China Applauds U.S. Congress Trade Vote
By John Leicester/AP

Businesses looked forward to more trade, China’s government expressed hope for closer ties with Washington and China’s neighbors spoke of better peace prospects in Asia after the U.S. Congress’ vote for permanent trade ties with Beijing.

But while welcoming the vote, China’s trade and foreign ministries said a legislative provision to establish a human and labor rights monitoring commission was “unacceptable.”

“We reserve the right to take further actions,” Foreign Ministry spokeswoman Zhang Qiyue said.

Still, Zhang indicated that Beijing would honor its agreement with the United States in November to open China’s markets, which helped pave the way for expected Chinese entry this year into the World Trade Organization.

Noting U.S. concerns about Beijing’s trustworthiness, chief Chinese WTO negotiator Long Yongtu said “China will undoubtedly carry out all its promises made in the WTO negotiations,” state media reported.

Beijing’s anger over the human rights commission had been expected. For weeks, China had called for unconditional permanent normal trade relations, from Congress. U.S. officials explained that the commission was necessary to win over wavering legislators so that the vote succeeded.

Although not essential to China’s long-sought entry to WTO, permanent trading rights will give Beijing access to its biggest export market and continue the momentum of its march into the Geneva-based rule-making body for world trade.

It also will end 20 years of annual congressional reviews of China’s trade status that had become forums for criticizing Chinese human rights abuses, threats to Taiwan, suspected espionage and other problems.

“To have a stable trade relationship between China and the United States just makes you feel more comfortable, instead of worrying every year about whether China is going to retaliate or America is going to play good cop, bad cop,” said Tara Lucas, CEO of a Chinese women’s website, Gaogenxie.com.

The WTO’s director, Mike Moore, said he was “delighted.”

In Hong Kong, the former British colony which thrives on China trade and investments, leader Tung Chee-hwa cited economists as saying China’s foreign trade should double within eight years of joining the WTO. Hong Kong must get “fully prepared,’’ he said.

Singapore’s trade minister, George Yeo, said the vote “greatly improves the prospect for peace and prosperity in the Pacific for many years to come.” But he also warned that China’s WTO entry would bring competition for Southeast Asian economies.

Despite months of heightened tensions and a rivalry dating back to its split from China amid civil war 51 years ago, Taiwan also welcomed the vote, saying it could eventually promote openness and democracy on the communist-ruled Chinese mainland.

“In the long run, it shall have a positive effect on Taiwan’s security,” said government spokeswoman Chung Ching.

The business community in China cheered the House vote as heralding a new phase of reform. They predicted that under WTO, China will need to revamp protected state industries to compete with foreign firms and that ultimately needed legal reforms will bring change to the communist government.

“For China, first of all this will create more opportunities to equally take part in the global economy. Even more importantly, this will advance economic and political reforms in China,” said Mao Yushi, an economist with the private think-tank and consulting firm Unirule.