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Clinton: China Can't Be Shunned

On the eve of a summit with Chinese Premier Zhu Rongji, President Clinton strongly defended his China policy against those who think he's sold out American political and commercial interests to Beijing.

Mr. Clinton said his policy of "principled, purposeful engagement" would not only advance America's values and interests, but would also encourage China to open up politically and economically.

Mr. Clinton's policy faces loud opposition in the Congress, both from Democrats who abhor the "butchers of Tiananmen" who continue to abuse the human rights of a billion people and from Republicans who see serious national security lapses stemming from the White House's friendly ties with China, including allegations of nuclear secrets stolen from a federal weapons lab.

China policy should not be driven by domestic politics, he said, ignoring his own success against President Bush's China coddling in the 1992 election (or, for that matter, the whole "who lost China" debate of 1950).

"We cannot allow a healthy argument to lead us toward a campaign-driven cold war with China," Mr. Clinton warned.

Zhu arrives in Washington later Wednesday, hoping to get Mr. Clinton's endorsement for full membership in the World Trade Organization. In Los Angeles on Tuesday, Zhu announced a breakthrough on agricultural trade issues that had been a major stumbling block.

Mr. Clinton was encouraging on WTO membership, but he offered no new concessions. "It is not a favor to China; it is the best way to level the playing field," he said.

U.S. and Chinese trade negotiators worked furiously to try to strike a deal that could be announced during Zhu's visit to Washington on Thursday and Friday. The United States has always insisted that China's entry into the WTO must be done on commercial terms, not political ones.

In the post-Cold War world, military and security considerations no longer rules the nation's economic policy. In the security sphere, the United States is working hard to maintain the integrity of the U.S. and European alliance against Serbian aggression. China has strongly condemned the bombing campaign.

But in the economic sphere, the positions are nearly reversed: Washington hopes to cut a deal with China on WTO at the same time that it's engaged in two steamy fights with the European Union in the WTO over bananas and beef.

Just as he did a year and half ago before meeting with Chinese President Jiang Zemin, Mr. Clinton spoke out strongly on human rights and political differences with China, but he insisted that it would do no one any good to isolate China.

"We must build on opportunities for cooperation with China where we agree, even as we strongly defend our interests and values where we disagree," Mr. Clinton said. "That is the purpose of engagement, not to insulate our relationship from the consequences of Chinese actions, but to use our relationship to influence China's actions in way that advances our values and our interests."

Mr. Clinton urged the Chinese to open up their society for their own good. He said the experience of South Korea and Thailand had shown that "expressed dissent is far less dangerous than repressed dissent."

"We often see that a tight grip is actually a sign of a weak hand," Clinton said.

While in Washington, Zhu was to dine with Clinton on Thursday evening, hold meetings with officials of the World Bank and International Monetary Fund and meet on Friday with a handful of lawmakers back early from the two-week congressional recess.

Zhu also will visit Denver, Chicago, New York and Boston, courting the political and business elite at each stop. He may observe financial markets, possibly the New York Stock Exchange and the Chicago Board of Trade.

Rex Nutting is Washington bureau chief for CBS MarketWatch. The Associated Press contributed to this report.

Written By Rex Nutting, CBS MarketWatch

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