Clinton, Greenspan: China Belongs
In another forceful display in favor of normalizing trade relations with China, President Clinton, joined by Federal Reserve Chairman Alan Greenspan, made a statement in favor of a bill before Congress that would bring the giant communist country into the World Trade Organization.
"Momentum is building, but we still have a challenging fight ahead of us," the president said at a Rose Garden address Thursday morning, of the coming fight in Congress.
He then gave the microphone over to Greenspan, who read from a brief statement in support of the legislation.
"Should China accept the challenge of international competition … It will doubtless promote internal economic development … and contribute to lifting its citizens out of poverty," Greenspan said. "Further development … will work to strengthen the rule of law in China."
China is one of the world's biggest economies, Greenspan said, even though it has barely begun to realize its full potential.
"(The Chinese economy) should expand further in response to WTO participation," Greenspan said.
After Greenspan's brief address, Mr. Clinton spoke about China's human rights problems, and the security implications of admitting the country into the WTO.
"If you want a more stable Asia … yes is the right vote," the president said, adding "The only people in China who want this vote to fail are the more reactionary elements … who do not want to give up control. And they need America as a continuing enemy so they do not have to give up control."
Neither President Clinton nor Greenspan took questions from reporters.
Greenspan's appearance alongside Mr. Clinton, a rare occurrence, is a signal that "this is not your average vote," a White House aide told CBS News Correspondent Peter Maer Thursday morning.
From Shanghai nightclubs to Beijing street corners, China is ready to open up for free trade. And U.S. companies are ready to cash in. China now sells $60 billion more to America than it buys each year.
But the Congress must pass the permanent normal trade relations act before the Clinton administration can sanction the move.
Opponents, however, say China's record on human rights and its recent attempts to bully Taiwan preclude the country from becoming a WTO member. Moreover, House Democrats led by minority leader Richard Gephardt say such a law, if passed, would be bad news for American labor unions.
If the congress doesn't pass the law, it won't necessarily stop China from entering the WTO, because other countries can work to gain entry for China.
If such a scenario came to pass, American economic interests - especially in the automotive sector - could suffer billions in losses, reports CBS News Correspondent Barry Petersen.
Meanwhile, talks between China and the European Union on Beijing's entry into the WTO dragged into a fourth day Thrusay, but an EU negotiator said a deal seemed near.
"We are now at the stage that hopefully we can close the remaining gaps," said Anthony Gooch, spokesman for lead EU negotiator, Pascal Lamy.
Gooch added that negotiations were getting tougher because the two sides were closer to a deal.