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China Reform Monitor, No. 1, October 27, 1997
American Foreign Policy Council, Washington, D.C.

Gingrich Urged to Allow Religious Persecution Debate Before Summit;
Party Documents Show Beijing's Strategic Planning for P.R. Coup

Editors' note: Since we began publishing Russia Reform Monitor in April 1995, many of our readers have asked us to produce a similar bulletin on the People's Republic of China. Now, to mark the historic summit between President Bill Clinton and Chinese President Jiang Zemin, we are happy to launch the China Reform Monitor to chronicle change in China and U.S. policy toward the region. We begin our series with a review of events leading to the summit.

October 16

China will have great difficulty adhering to the regimen imposed by World Trade Organization (WTO) membership because of a lack of central control over provincial actions and a general lack of legal institutional framework, experience and personnel, the Financial Times reports. The paper questions Beijing's willingness to respect WTO rules: "Unless it did so, its liberalization pledges would be worthless, and its membership disruptive. However sincere Beijing's commitments, its capacity to deliver is unclear."

Leading Democratic Members of Congress issue a letter calling on Speaker Newt Gingrich to clear the way for open debate on various pending legislative proposals regarding China before the summit. In the letter, House Democratic Leader Gephardt (D-Mo.), Assistant Leader Bonior (D- Mi.), and Rep. Nancy Pelosi (D-Cal.) said that Congress "must be allowed to speak out on China's religious persecution, trade violations, weapons proliferation and other important issues. We recently learned that you do not intend to permit such legislation to be debated by the House of Representatives prior to the U.S.- China summit. . . . the time for the House to act on U.S. policy toward China is now, not after the summit has concluded."

October 17

Party documents circulating in Beijing detail the planned pre-summit publicity buildup for President Jiang Zemin. Jiang is portrayed as having "inherited and developed" the diplomatic theories of Deng Xiaoping toward diplomatic maneuvering with the United States. The venerated Deng's "axioms" are, "keep a low profile, never take the lead," and "don't strike first but nail your enemy while striking back." Writes Willy Lo-Lap Lam in the South China Morning Post, "Deng also instructed the party to pacify the U.S. temporarily through strategic concessions so that China can get maximum elbow room to develop." Jiang is portrayed in the documents as having advanced these tactics and being fully prepared for a diplomatic coup. The reports note that Jiang's restoration of full relations with Washington will help further to isolate Taiwan.

"Chinese traders with billions of dollars to blow plan a shopping spree" designed to "silence American complaints about a growing trade gap," the Associated Press reports. Beijing will publicize its billion-dollar purchases of airplanes, automobile plants, wheat, chemicals, and its interest in billions of dollars' worth of nuclear plants "so that the U.S. people can understand that this relationship is indeed very important and it is not a one-way relationship," says Vice Minister of Foreign Trade Sun Zhenyu. China's 1997 trade surplus with the U.S. is estimated to range between $44 and $50 billion; it reached a record monthly high in August, topping $5.2 billion, half of which is in Christmas season toy and related imports.

--Al Santoli


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