President Clintons decision on Apr.8 to send Chinese Premier Zhu Rongji packing without an agreement on Chinas entry into the World Trade Organization seemed to be a massive miscalculationThe President took a drubbing from much of the press, which had breathlessly reported that a deal was in the bagThe Cabinet and Whit House still appeared divided, and business leaders were characterized as furious over the lost opportunityZhu charged that Clinton lacked the courage to reach an accordAnd when Clinton later telephoned the angry Zhu to pledge a renewed effort at negotiations, the gesture was widely portrayed as a flip-flop.
In fact, Clinton made the right decision in holding out for a better WTO dealA lot more horse trading is needed before a final agreement can be reachedAnd without the Administrations goal of a bullet-proof agreement that business lobbyists can enthusiastically sell to a Republican Congress, the whole process will end up in partisan acrimony that could harm relations with China for years.
THE HARD PARTMany business lobbyists, while disappointed that the deal was not closed, agree that better terms can still be hadAnd Treasury Secretary Robert ERubin, National Economic Council Director Gene BSperling, Commerce Secretary William MDaley, and top trade negotiator Charlene Barshefsky all advised Clinton that while the Chinese had made a remarkable number of concessions, were not there yet, according to senior officials.
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