Former US Trade Representative Elaborates Negotiation on China's WTO Entry

Home>>Business

Last updated at: (Beijing Time) Friday, November 23, 2001

Former US Trade Representative Elaborates Negotiation on China's WTO Entry

At the advent of China's entry into the World Trade Organization (WTO), a Macao China Satellite TV reporter had an exclusive interview with former US trade representative Charlene Barchefsky. The "iron lady" who argued heatedly for the interest of the United States of American in the past was lost in recollection, retrospection and feelings were shown in her facial expressions. Following are the main contents of the interview.

QUESTION: During your term of office serving as trade representative of the Clinton administration, of the nearly 300 trade accords you reached with various countries around the world, which are the achievements you are most proud of?

ANSWER: In those years, there were many important agreements which were difficult to reach at the time of negotiation. But as far as worldwide agreements are concerned, our agreements on telecommunications, financial service, e-business and information technological products are important achievements for the United States. Many of the bilateral agreements reached with China, of course, are most important accords, which include not only agreements concerning China's joining the WTO, but also agreements on intellectual property rights.

Q: Do you think that China WTO entry is a "win-win" result, if so, what major benefits will it bring to China, to the United States and to the international community?

A: It is absolutely a "win-win" result. I think for China the main benefit is that WTO entry will help consolidate China's economic reform which, on the one hand, will be consistent with the international standard and, on the other hand, will be adaptable to the level of China's economic development, while leading China's economic development to maturity, it will keep the interference it brings to the Chinese people to the minimum. I think this represents an important step in so far as China is concerned, a step obviously containing long-term interests for the sustained and steady growth of China's economy. It will enable the United States to gain more opportunities of access to the Chinese market, and US enterprises will be able to provide more extensive services for the Chinese economy, while promoting China's economic growth, it will also help develop American commerce. For the global economy, China is a very important member. The global economy is developing in the direction of convergence. This does not mean that each member has the same system. China's accession to the WTO is vital to the economic stability of the international community. When diplomatic and strategic factors are taken into consideration, I think China will become more integrated with its Pacific neighbors and the world at large. In the diplomatic sense and in the sense of international security, the world will become more integrated with China. This US-China agreement has laid a foundation for achieving these diplomatic and security benefits.

Q: What short- and long-term loss or threat will WTO entry bring to China?

A: It goes without saying that some Chinese people are worried about the impact that would possibly be brought about by intensified competition. Here I want to emphasize as far as I know there is no country in the world whose economy has become unstable as a result of joining the WTO. One of the reasons is that the obligations undertaken after WTO entry are being carried out step by step within a fairly long period of time. Given this, the economy of the country becoming a WTO member will not experience radical rocking, and interference effect will be kept to the minimum. Competition would stir up the employment market of every country, and this is no exception with China. Some job opportunities may be lost, but many more employment opportunities will emerge. This stirring process of uninterrupted re-creation of employment opportunities would have anyway emerged in the process of China's own development. WTO entry will help consolidate China's own reform and development. WTO entry should not be the cause for a greater loss of job opportunities and misplacement of employment. This had happened in the process of China growing into a main economy in the world.

Q: You have been conducting negotiations in many countries around the world, what aspects of your experience in carrying out negotiations in China are unique?

A: You know, negotiation between different countries is different, there exist different natures, different degrees of importance, different degrees of difficulties, different keynotes and different atmosphere. Negotiation with the Chinese is an enchanting experience, which is manifested in two aspects: first, In many matters of principle, China will make no concession. For instance, China's knowledge of its own developmental level and actions it adopts must be commensurate with its current developmental level reached in the process of the maturity of its economic development. This is completely reasonable. Of course, in many questions of principle, the United States also will not give way. I have discovered that Chinese negotiators are invariably clear-headed, they explicitly state the questions of principle on which China will not make concession, this is not something that can be accomplished by all countries. As a matter of fact, this is not the case with most countries. This does not make negotiation easier, but rather it makes the foundation for negotiation very distinctive, one party is able to know what the other party is thinking about, and this is true of the other side. The negotiation is crystal clear, but is very difficult. Second, Chinese negotiators are very pragmatic, they, together with us, seek practical solutions to questions arising in the process of negotiations by "win-win" methods which make it possible to uphold the principles of both the Chinese and American sides, then they seek practical methods for handling concrete differences arising in the process of negotiation. Chinese negotiators are very clever and very difficult to deal with, they are experts in seeking practical solutions to questions. These can also be seen in negotiations with other countries, but I've never seen they can reach the level of the Chinese negotiators. In the scope of a very firm principled stand, it is a pioneering spirit that makes the negotiation with China very interesting, intricate and complicated, but finally with fruitful results.

Q: In your contacts with top Chinese leaders, what things are particularly worth memory?

A: There are many. President Jiang and Premier Zhu have made a very deep impression on people. It is, of course, a great honor to me to be able to have contacts with them. The Chinese people can absolutely be proud of the methods the two leaders use to handle intricate and complicated negotiations and political problems. As you have noticed that it is very difficult for the American side to handle political problems. The relations between President Jiang and President Clinton have reached the extent that divergences can be defused through cooperation. I think that all parties had been doing very well, particularly when considering the fact that previously China had never participated in such intricate and complicated global negotiations that involved so many details. This gave people a very, very deep impression. When negotiation involved very particular and difficult problems, the Chinese side demonstrated their abilities in handling economic and political problems, they were very familiar with the method of enterprise operation, they could observe what the Western society would react to the various proposals of the Chinese side, all these have indeed left a deep impression on people. It's really a great pleasure and honor to me to be able to participate in this process and to see its successful end. For the former President Clinton, this was really a major achievement in the aspect of international affairs during his presidential tenure of office.

Q: President Clinton praised you as an outstanding negotiator of the country; could you reveal the secret of your success?

A: I don't know whether or not I am an expert, but I abide by several simple principles. One is that you must always remember that a round of negotiation must end with a win-win result. Otherwise, it may either be the negotiation ends in failure, or you succeed just by chance, but this success will not last long, because the transaction under negotiation would not be completely realized. You have to proceed from the concept of getting the negotiation to end in a "win-win" result and, with this as the starting-point, formulate tactics by which to find the things you want to achieve, at the same time, you must hold in your hands all arguments. In each round of negotiation, there are invariably a hundred methods for achieving a specific goal, you need to consider them one by one, during negotiations, you need to observe carefully, listen attentively to what the other side say, you yourself should speak less, and you must come to realize that finally the negotiation must end with a "win-win" result. If that would mean that you need to make concessions, if the agreement under negotiation is important enough, then you should make concession, but you must never make full concessions at the very beginning, concessions would likely be made step by step and bit by bit. But making concessions would eventually become very, very important.

China's Entry Into WTO Offers Chances of Growth, Peace: Barshefsky

China's Entry Into WTO Important to Global Community, Barshefsky Says