1.PassageOne(ClintonIsRight)PresidentClinton’sdecisiononApr.8tosendChinesePremierZhuRongjipackingwithoutanagreementonChina’sentryintotheWorldTradeOrganizationseemedtobeamassivemiscalculation.ThePresidenttookadrubbingfrommuchofthepress,whichhadbreathlesslyreportedthatadealwasinthebag.TheCabinetandWhitHousestillappeareddivided,andbusinessleaderswerecharacterizedasfuriousoverthelostopportunity.ZhuchargedthatClintonlacked“thecourage”toreachanaccord.AndwhenClintonlatertelephonedtheangryZhutopledgearenewedeffortatnegotiations,thegesturewaswidelyportrayedasaflip-flop.Infact,ClintonmadetherightdecisioninholdingoutforabetterWTOdeal.Alotmorehorsetradingisneededbeforeafinalagreementcanbereached.AndwithouttheAdministration’sgoalofa“bullet-proofagreement”thatbusinesslobbyistscanenthusiasticallyselltoaRepublicanCongress,thewholeprocesswillendupinpartisanacrimonythatcouldharmrelationswithChinaforyears.THEHARDPART.Manybusinesslobbyists,whiledisappointedthatthedealwasnotclosed,agreethatbettertermscanstillbehad.AndTreasurySecretaryRobertE.Rubin,NationalEconomicCouncilDirectorGeneB.Sperling,CommerceSecretaryWilliamM.Daley,andtoptradenegotiatorCharleneBarshefskyalladvisedClintonthatwhiletheChinesehadmadearemarkablenumberofconcessions,“we’renotthereyet,”accordingtoseniorofficials.NegotiatingwithZhuovertheremainingissuesmaybetheeasypart.AlthoughClintoncansignalU.S.approvalforChina’sentryintotheWTOhimself,heneedsCongresstograntBeijingpermanentmost-favored-nationstatusaspartofabroadtradeaccord.AndthetemptationformeddlingonCapitalHillmayproveover-whelming.ZhuhadbarelylandedbeforeSenateMajorityLeaderTrentLott(R-Miss)declaredhimselfskepticalthatChinadeservedentryintotheWTO.AndSenatorsJesseA.Helms(R-N.C.)andEmestF.Hollings(D-S.C.)promisedtointroduceabillrequiringcongressionalapprovalofanydeal.Thehiddenmessagefromthesethreetextile-stateSoutherners:GetmoreprotectionfortheU.S.clothingindustry.Hopingtosmooththeway,theAdministrationtried,butfailed,tobudgeZhuontextiles.Alsoleftinthelurch:WallStreet,Hollywood,andDetroit.ZhurefusedtoopenupmuchofthelucrativeChinesesecuritiesmarketandinsistedon“cultural”restrictionsonAmericanmoviesandmusic.HealsoblockedeffortstoallowU.S.automakerstoprovidefleetfinancing.BIGJOB.Already,businesslobbyistsareblanketingCapitolHilltopresaleanyeventualagreement,butwhatthey’veheardsofarisn’tencouraging.Republicans,includingLott,saythat“thetimejustisn’tright”forthedeal.Translation:We’redeterminedtomakeitlookasifClintonhascapitulatedtotheChineseandisignoringhuman,religious,andlaborrightsviolations;thetheftofnuclear-weaponstechnology;andthesaleofmissilepartstoAmerica’senemies.Beijing’sfiercecriticswithintheDemocraticParty,suchasSenatorPaulD.WellstoneofMinnesotaandHouseMinorityleaderRichardA.Gephardtof1Missouri,won’thelp,either.JusthowtoughthelobbyingjobonCapitolHillwillbebecomeclearonApr.20,whenRubinlectured19chiefexecutivesontheneedtodisciplinetheirRepublicanallies.WithbusinessandtheWhiteHousestilltradingchargesoverwhoisresponsibleforthedefeatoffast-tracktradenegotiatinglegislationin1997,workingtogetherwon’tbeeasy.AndRepublicans—withawink—saythatthey’lleventuallyembraceChina’sentryintotheWTOasafavortoCorporateAmerica.ThoughnotlongbeforetheytortureClinton.ButZhuisoutonalimb,andifCongressoverdoesthecriticism,hemaybeforcedbydomesticcriticstorenege.Businessmust...
