September 12, 2000

MEMORANDUM TO: OPINION LEADERS

FROM: GARY SCHMITT

SUBJECT: China, WTO and Taiwan

In recent negotiations with representatives from the World Trade Organization (WTO) over the terms of its membership, China has demanded that any accession agreement include provisions which would stipulate that Taiwan is part of mainland China. Despite assurances from the administration to the contrary, the Wall Street Journal reports today (“Jiang Muddies the Waters,” p. A26) that Chinese President Jiang Zemin is still insisting that Taiwan not be admitted into the WTO other than as a customs territory of China. (Remarkably, Jiang Zemin’s statement, made before a New York business group this past week, went virtually unreported by the major newspapers and media.)

China’s insistence on this point contradicts the long-standing claim by U.S. policymakers that Beijing accepted the fact that its membership in the WTO would quickly be followed by Taiwan’s accession as a separate customs entity. Given China’s record in keeping its word on past commitments, its current stance should come as no surprise. But it is reason enough for the Senate to postpone its vote on permanent normal trade status for China until the terms of its membership in the WTO are finalized and this matter clarified. Or, at the very least, Congress should insist that, as a binding condition for approving PNTR, the administration should be prohibited from agreeing to accession terms that in any way suggest that Taiwan’s admission into the WTO is conditioned on its acceptance of PRC sovereignty.

President Clinton has written Sen. John Kyl (R-AZ) a letter pledging the U.S. would not accept Beijing’s attempt to advance its claim to Taiwan in the accession protocol. But in light of the administration’s record in holding the PRC to its pledges and its willingness to accept China’s view of the meaning of “One China,” such assurances are not sufficient.