A worthy journalistic competitor to ChinaOnline brings us
news today that China's top telecommunications official has
tendered his resignation in protest of Premier Zhu Rongji's
concessions to U.S. trade negotiators on China's World Trade
Organization (5/4/1999) membership.
The Wall Street Journal (if you must know) informs us that reliable but unnamed sources in Beijing say the Minister for Information Industries, Mr. Wu Jichuan, asked to be transferred to a provincial post after learning of the telecommunication concessions Zhu gave away to the U.S.
Minister Wu is a strong protector of China's telecommunications
sector, and the concessions Zhu made at the White House last month
would open China's booming telecom market to a threatening influx
of aggressive, efficient and technologically superior foreign
competitors.
No doubt, Minister Wu had hoped his immediate boss, China's
industrial policy czar, State Councillor Wang Zhongyu, could have
prevented Premier Zhu from handing away the keys to China's
telecommunication market to try to clinch a WTO deal. And no doubt,
Wang Zhongyu himself was dissatisfied with the outcome, as he and
other members of Premier Zhu's entourage in Washington debated
their moves in late night strategy sessions in a Washington
hotel.
Premier Zhu's powerful pro-state industry advisors on the trip,
Wang Zhongyu, State Planning Commissioner Zeng Peiyan, and
Communist Party economist Ma Kai probably discouraged Zhu from
making bold concessions, while Zhu's pro-free trade advisors, state
councillor (and former foreign trade minister) Madame Wu Yi, former
foreign trade minister Shi Guangsheng, and Shi's deputy Vice
Minister Long Yongtu, probably argued that quick WTO membership was
more important than trying to insulate state
industries from foreign competition.
In the end, the pro free-trade advisors won out and Wu, among others in the protectionist camp, were stung. But Wu Jichuan's proffered resignation is surely far more symbolic than substantive -like a letter written not so much to Premier Zhu as President Clinton.
By leaking news of the Minister's unhappiness to a major American
newspaper, Wu tells President Clinton he isn't the only one under
serious political pressure in the US-China relationship. If Clinton
is under pressure from Big Labor or Hollywood, he should understand
that Premier Zhu and his boss, President Jiang Zemin, are under
equally heavy pressure from their most important constituency, the
100 million workers in China's state industries.
Even if Minister Wu Jichuan doesn't resign (and I would be very
surprised if he did), U.S. trade negotiators should listen to his
message. China's economic leadership lost tremendous face by
President Clinton's bait-and-switch tactics, and Premier Zhu's
reputation at home was undermined.
If Washington is unable to support China's WTO application, it
ought not delude itself about the political realities in China. The
message of Wu's "resignation" is perfectly clear: the concessions
that the U.S. Trade Representative, Charlene Barshefsky, wrung last
month from her counterpart, state councillor Wu Yi, are not set in
stone.
John J.
Tkacik, Jr., is president of China Business Intelligence,
an Alexandria, Virginia, consulting firm. He is also a Research
Fellow in the Asian Studies Center at The Heritage
Foundation.
Originally appeared on China Online.