China threats, Gore agenda complicate trade issue

By Tom Raum, Associated Press, 2/24/2000

ASHINGTON - China's escalation of threats against Taiwan could jeopardize Beijing's battle for market-opening trade agreements, members of Congress cautioned yesterday. Lawmakers from both parties said Vice President Al Gore's political agenda harms prospects for a US-China accord.

US Trade Representative Charlene Barshefsky told the Senate Finance Committee that the administration remains united behind winning approval of a China trade deal this year, despite new belligerence by China and a controversy over statements by Gore to labor leaders. But committee members told her the damage may have already been done.

For the second day, administration officials and congressional leaders condemned China for threatening to use force if Taiwan stalls on reunification talks.

''What China did this week was very counterproductive,'' said Senate Minority Leader Tom Daschle, Democrat of South Dakota. ''They need to take great care in their public pronouncements if they truly want to become part of the world community.''

''Any suggestion that this situation can be resolved through the use of force, that is something that our policy opposes,'' said White House spokesman Joe Lockhart.

China's statements, contained in a 11,000-word policy paper, make the administration's effort to win approval for permanent trade benefits more difficult. The vote, expected in late spring or early summer, would ease the way for China's long-sought entry into the World Trade Organization.

In an interview, Treasury Secretary Lawrence Summers stressed that the administration continues to believe it is ''enormously in our commercial interests'' for China to win permanent normal trade relations with the United States as well as gaining WTO membership.

''I am very hopeful that the national interests will prevail and we will see China's admission to the WTO this year,'' Summers said. ''I am glad to see Governor Bush and others supporting that proposition,'' referring to Texas Governor George W. Bush, a Republican presidential candidate.

The administration can no longer take Senate approval for granted, Finance Committee Chairman William Roth, Republican of Delaware, told Barshefsky. It has always been assumed that the bill had wide support in the Senate.

''The reckless threat to use force against Taiwan and the recurring human rights violations will necessarily affect the Senate's consideration of the agreement,'' said Roth.

Roth and Senator Daniel Patrick Moynihan of New York, the committee's senior Democrat, also suggested the bill was being undercut by Gore's courtship of labor in his presidential campaign. Labor has made defeat of the China trade bill a top legislative priority.

''You're going to lose this,'' Moynihan warned Barshefsky.

''I think the administration has no intention of losing this,'' Barshefsky replied.

Gore complicated the issue last week by sitting down privately with labor leaders in New Orleans at the AFL-CIO's annual winter meeting. Some of those attending said Gore left the impression he could write stronger environmental and workers-rights protections if the China trade were renegotiated in a Gore presidency.