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Deputy Secretary of State previews this week’s meeting between Bush, China's Hu

WASHINGTON, DC - 04/19/06 - The US wants China to be a partner in promoting positive economic and security relations in the international community, according to Deputy Secretary of State and former US Trade Representative Robert Zoellick.

In a speech Monday to the International Institute for Economics in Washington, Zoellick said the upcoming meeting between President Bush and Chinese President Hu Jintao "will not only be a forum for bilateral discussions but will address global issues challenging the international community."

The two leaders are scheduled to hold discussions tomorrow on "issues of mutual interest" including two-way trade and the protection of intellectual property, according to the White House.

Integrating China into the international marketplace had been a goal of US policy for the past two decades, said Zoellick.

"That goal has been advanced with China's accession to the World Trade Organization (WTO) in 2001 and its incredible economic development," he said.

The future of US-China relations, he said, "depends on forging a partnership between the two countries within the international system, as well as ensuring that China develops as a responsible global partner."

Because of the size of the US and Chinese economies, "both have the capacity to have a positive influence on the international system and can have greater impact if they work as partners rather than individually," he added.

At the same time, though, both countries have domestic considerations that affect bilateral relations, the deputy secretary said.

On the US side, Americans want to see US-China trade as a fair process that benefits both countries, he said, praising recently completed senior-level trade talks between Washington and Beijing during which China agreed to greater market access for US-made goods, as well as more transparency in its economic reporting.

The negotiations - which stretched over six months under the aegis of the US -China Joint Commission on Commerce and Trade (JCCT) - resulted in the Chinese agreeing to reopen its market to US-produced beef; launch negotiations to join the WTO government procurement agreement; require Chinese computers to use legal software; and close optical disk plants that produce pirated CDs and DVDs and stepped up enforcement of IPR.

In addition, Beijing agreed to require all trade-related measures to be published in a single official journal; eliminate barriers to trade in medical devices; and launch a dialogue on the steel industry.

The negotiators also agreed to establish a US-China High Technology and Strategic Trade Working Group under the JCCT to review export control cooperation and facilitate high technology trade.
Among the Group's first activities will reportedly be planning a bilateral export control seminar in China.

Zoellick also welcomed specific actions by the Chinese delegation, which signed contracts for more than $16.2 billion worth of US goods and services.

"This was not merely a single purchase by the Chinese but a signal to the American public of the beginning of a series of mutually beneficial business relations," he said.

In addition, he acknowledged China's pledges to do more to protect intellectual property rights (IPR) and implement a more flexible exchange rate for its currency.

Zoellick said the goal of China's leadership should be to assure the international community that the country's economic growth is "peaceful development" that embraces the international system rather than challenges it.

For example, he said, China's accession to the World Trade Organization demonstrates the country's willingness to play by international rules.

The country's internal economic development, said Zoellick, "is closely linked to its international posture, as China's trade with other countries provides the funding and materials for such development."

China is trying to increase its exports as well as its domestic consumption of goods and services, he said, adding that even though the country has made tremendous economic gains in a short period of time, Chinese leaders are sensitive to the fact that the country as a whole is still in a process of development, especially in its interior and western regions.

As a result, China sees its trade relationship with the US as "absolutely crucial" for maintaining its national economic performance, which in turn deters potential unrest in its society, he said.

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