TRANSCRIPT: DALEY REMARKS AT 4/1 AIRPORT DESIGN CONTRACT CEREMONY
(U.S.-China WTO agreement highly unlikely during Zhu visit)Guangzhou, China -- Secretary of Commerce William Daley said it is highly unlikely the United States and China will come to agreement on China's accession to the World Trade Organization (WTO) during Premier Zhu Rongji's visit to the United States.
During a question and answer period following remarks at an airport design contract ceremony in Guangzhou April 1, Daley noted that the visit would be important for other reasons.
"First of all on the Premier's visit, it is always important for the Premier to visit our country. It's now been ten years since the American people have had the opportunity to engage a Chinese Premier, listen to them, listen to their ideas, listen to what changes have gone on in China and the vision for the future of China."
Such visits, he said, play an important part in the continuing U.S.-China dialogue and contribute to openness on both sides of the Pacific.
As for China's entry into the WTO, Daley referred to U.S. Trade Representative Charlene Barshefsky's recent visit to Beijing where she said great progress has been made in the accession talks but noted there are still some serious differences. Daley said it was unlikely that USTR negotiators in Beijing could forge an agreement by the time the Premier Zhu leaves for the United States.
"It is important that China enter the WTO because it is important to China," Daley said. "So it is in the interest of China and it is in the interest of the rest of the world that this be accomplished -- we hope sooner rather than later."
Following is the official transcript of the event:
(begin transcript)
Remarks by U.S. Secretary of Commerce William M. Daley
at Ceremony to Recognize
Parsons/Griner International Airport Design Contract
Guangzhou Oriental Resort, Pines House
April 1, 1999Thank you very much. Mayor Lin we thank you for your hospitality, during our brief visit to your city. It is obviously a very vibrant, lively, exciting and dynamic city and we do sincerely appreciate the opportunity not only to be here but enjoy your company and once again on behalf of all of our delegates, we thank you for your hospitality.
President Zhang it is nice to see you again and we thank you for what you are doing in the development of this airport and the openness in which you have conducted the selection of those principal players who will help build this wonderful airport.
Susan Kurdland, of the Federal Aviation Administration, the primer aviation administration in the world, we are very proud of the fact that the Federal Aviation Administration, the Department of Transportation has been represented on this trade mission along with the other federal agencies who are here today, the Export Import Bank, the Department of Housing and Urban Development, and we have also been joined by the Department of Energy on this trip. To the business delegates from this presidential trade mission who are with me, it is very nice to see them here again at another event as we come to the end of a very important trade mission. Let me also acknowledge Ed McKeon, the Consul General of the United States here in Guangzhou and of course Jim Thrash. Before this trip that I have been on is over, I will have visited eight airports, seventy-five percent of which Parsons has helped to design. They are a true world leader in airport construction. We all enjoy their work and you too the people of Guangzhou will enjoy this fine job that they will do on your behalf. On this infrastructure trade mission, four of the eighteen companies that I have brought with me are involved in aviation. They build airports. They build airplanes. And they build the air traffic control safety systems to make our flying safer.
The fact is that in this global economy where we move people and goods like we have never before, we need an aviation system that can handle this. In this century that is coming to a close, in less than ten months, it has been the bicycle that moves the people of China. In the next century, it has increasingly become the automobile and the airplane, and this city will be ready with an absolutely world-class airport that will move the people within China, will bring visitors from around the world as tourism becomes increasingly important in this province and it will move goods in and out as trade between our nations increase.
We are very glad to see an American company with so much global experience help you with this most important project for the next century of this great city. You know the famous Chinese journey of one thousand miles begins with but a single step. I say that today's step will make that thousand mile journey for the flying public, quicker, safer, and much more convenient. I thank you once again on behalf of our business delegation and Mr. President and Mr. Mayor, we thank you for the hospitality and the opportunity for an American company to be involved in this project and for the people of Guangzhou and the people of China, and the people who will come through this airport to see the expertise and the world-class, first-class job that an American company can do for you.. We thank you very much for having us here today.
I am to begin a press conference. But let me begin first by thanking our Chinese hosts who have been so gracious to us throughout China. Our stop here, in Shanghai, and Beijing have all been very helpful for our businesses. As you may know this morning I participated in a telecommunications summit with a number of American companies. It was the second Chinese-American telecommunications summit. During our meetings with Minister Wu, he confirmed news of what we heard from Prime Minister Zhu and State Counselor Wu Yi, and that is regarding CDMA. China will allow companies to introduce CDMA networks across China. As you know our companies in the U.S. are market leaders in the development of this field, in which they see tremendous opportunities. We believe that decision will be good. We hope, we expect the American companies, we fully expect it will bring a more reliable and clear telecommunications system throughout China. So we thank them and we look forward to not only the end of this trip because it has been so productive, but we look forward to longer and a stronger relationship between China and the United States. We have our difficulties, we have our disagreements, that has been acknowledged repeatedly and will continue to have them, but the key to this relationship, as we go into the next century is dialogue, discussion and an honest and open and frank discussion between us of our differences and those opportunities to help the people of China and help the people of the United States into the next century.
Thank you very much. And at this point if there are questions, I will take the questions.
Q: Is it realistic for China to enter the WTO. Is there going to be a deal due to Premier Zhu's visit to Washington?
DALEY: Over the last number of weeks, as Ambassador Barshefsky stated when she left Beijing after discussions with the Premier and State Counselor Wu Yi, great progress has been made but there are major, there are still some serious differences. We would hope that they could be bridged. She left her senior team of negotiators in Beijing. Whether it could be done by the time the Premier leaves, I think that's probably unrealistic, but we have come a long way in our discussions and there has been great movement on both sides to reach an accommodation. It is important that China enter the WTO because it is important to China. It is important to the rest of the world but it is also important to China as your economy opens and changes and improves. So it is in the interest of China and it is in the interest of the rest of the world that this be accomplished -- we hope sooner rather than later. But whether it can be done by next week is probably unlikely, to be frank with you.
Q: Mr. Secretary my question is talking about R&D. China has no advantage compared to the U.S. But China, as one of the biggest potential markets in the world, talking about introducing technology, especially Chinese telecommunication for American enterprises. Introducing high tech economies and new technologies, China has also introduced quite a lot of policies and how do you view China's policies of introducing high technologies?
DALEY: High technologies, new technologies and especially in the information technology sector is what is driving most of the economic boom that's going on in our country and in most parts of the world. Technologies and the development of these, many of which U.S. companies have led the way over the last number of years, have improved our productivity of our companies, our competitiveness worldwide and they are probably fueling about half of the economic growth in the United States. And we are at the point right now where we are participating in the longest peacetime expansion in our nation's history. So technologies are extremely important to one's trading relationships and important to the growth of one's economy. And we are very proud of the U.S. companies that have developed so many of the technologies that are being used around the world in so many of the different sectors and adapting from certain sectors into others to make our companies more productive.
Q: I would like to ask some questions about WTO. You mentioned that the WTO has some negotiations. So, what are the disputes that are still unsettled? And I would like to ask what markets the U.S. expects China to open further. And which aspect are you more interested in, investment or marketing?
DALEY: To be frank with you, the negotiations which have been going on for a while are best done in private and not negotiating in public. We have heard from a number of our sectors whether it's agriculture, whether it's financial services, insurance services, telecommunications equipment, a number of sectors, power equipment, that have had concerns about the lack of access into the market of China over the years. So there are a number of sectors. But how to rank what ones should be prioritized would be best done in negotiations, to be frank with you, and not publicly.
Q: I have one question and so far as I know in American law there is a mood of anti-China, a suspicion about China and at this time you and your big delegation came to China and also brought several cooperation items. When you go back to America, how will you justify to those congressmen and senators?
DALEY: The fact is, as we all know, we have a very complex relationship and it is a challenging relationship as we engage and as China develops and has opened so much but has a long way to go in opening. This relationship of ours is now only 20 years old. In the normalization of our relationship, as China has opened and is economically opening, this is still a very short period in which we have been engaged. There are many differences between us -- our governments. There are differences, serious disagreements on a whole host of issues: whether it's human rights, whether it's labor, whether it's nuclear proliferation, a whole host of issues. Our governments, our form of governments, are very different and historically they've been very different. So what is going on is a lot of acknowledgment of the complexity of this relationship. There are certain people who believe that we ought to go back or go to a point where China and the U.S. are somehow adversaries. There are serious concerns about the allegations of the illicit gathering of national secrets in our country. That is a serious concern to us. Our president has said that. That is not an issue to be taken lightly. So you've got major differences but at the same time it is important, as we go into the next century, that we talk about and try to settle our differences and not allow those, whether they are in China or the United States, who want to develop an adversarial situation. And you probably could answer better than I, but I would assume there are people in China who would like to see a confrontational relationship between the United States and China, just as there may be people in the United States who would like to see a cold relationship, not a warm relationship. I assume there are people in China who would like the same thing. So it is not just U.S. people, some U.S. people, who may have questions or feel negative towards China. I would assume there are some people in China who feel the same way about the United States and those of us who believe that there's more to get from a relationship of understanding and cooperation have got to be able to discuss with those people their issues and try to address them openly and publicly and try to settle them where we can and have in some areas honest disagreements. We have an honest disagreement. We have a very serious disagreement in Kosovo right now. We look at the situation very differently, obviously, than the Chinese government does.
Q: Mr. Secretary, you've received assurances on the opening of CDMA nationally from three top officials now on your trip. I was wondering if these assurances that were made from Minister Wu Jichuan have included any idea of a timetable for when this might occur formally.
DALEY: No they didn't. He expressed strongly his desire to see it occur sooner rather than later -- and quick. He was very emphatic about that. So I would just encourage you and others, and those businesses that are interested, to reach the information telecommunications ministry and find out a clarification on it. But he was very emphatic to us that this should occur sooner rather than later. This is a technology for civilian telecommunications that could help and be more reliable and have clearer telecommunications so that should help it, but he did not give a timetable, but we would surely hope that it will be soon. There have been three pilot projects that have been very successful. There's no question as to the technology and what it can bring.
Let me just make one comment: if the mayor wants to answer any of these questions he is welcome to come up here and help me.
Q: Two questions: one is the foreign ministry today declined to give dates for Zhu Rongji's visit and I'm wondering if you could confirm what dates he has set down and whether there is a chance there would be a postponement or even a chance that the trip would be canceled? Second: there are a lot of foreign companies that have invested in Chinese telecom through a joint venture model called China-China Foreign and I'm wondering if they have been frozen and I'm wondering if you in your talks or in the WTO talks there's been discussion about a solution to these investments.
DALEY: The White House has put out last week, I believe on Friday or Monday, the dates when it was expected for the Premier to visit the United States. I believe {he is} arriving on Monday in Los Angeles and in Washington on Thursday. I believe of next week. On your second question, that issue has not come up. I assume it's being discussed in the context of WTO but it did not come up this morning.
Q: I almost hate to bring this up again. You said that it's highly unlikely that during Premier Zhu's trip, if it in fact goes ahead, that we'll get an agreement on WTO. Looking forward to the next deadline and also since the pace of negotiations seems to have been encouraging, what's the next deadline we can expect or what's the next kind of timetable that we can expect to start talking about a session?
DALEY: I don't think it has necessarily to be a date, an event, as there's been lots of speculation the last two summits that it would be done. It didn't get done, but we continued to negotiate. We continued to talk. The WTO Ministerial in November and a possible new round that would begin early next year are obviously important dates, but I would hope that if it isn't done this week in anticipation of the visit next week that we would continue to try to come to some conclusion sooner not later. I think the differences between us are not so great that it couldn't be closed, but the truth of the matter is that whether they're closed or not, as we've seen up to this point, the reforms and the change and the openness and the improvement in the economy in China will, I assume, will continue in our relationship, our trading relationship will continue. American investors have played a major role in the economic growth of China. Companies. American companies coming to China investing, bringing technologies and know-how and management skills have played an important part in the growth and improvement of the Chinese economy and so I would imagine that would continue, whether or not this agreement is reached shortly or not.
Q: Actually, I have two questions. You said it's pretty unlikely that the WTO deal will be signed next week. What do you expect to get from Zhu Rongji's visit to the U.S. next week? The second question is during your trip to China this time, how many commercial contracts have been signed between U.S. companies and Chinese companies and what's the total value amount?
DALEY: First of all on the Premier's visit it is always important for the Premier to visit our country. It's now been ten years since the American people have had the opportunity to engage a Chinese Premier, listen to them, listen to their ideas, listen to what changes have gone on in China and the vision for the future of China. When President Jiang Zemin was in the United States a year and a half ago there was an honest issue. Remember, {there was} a discussion at a press conference with our president, and people were able to see the difference in thinking and the difference in systems in the society and culture and how people look at issues. I think that's important and I think it is important for the Premier to travel throughout the United States as his original plan had, so that the American people could listen and make their own judgments and address some of these issues that we talked about earlier, of differences and disagreement, and then let the American people begin to make judgments about the philosophies and the programs of the Chinese government and what vision they see for the future and for the people of China and the future relationship with the United States. So I think it plays an import part in this continuing dialogue and openness so that the sort of people on both sides of the Pacific who may want to see a more adversarial or a confrontational style between us get minimized. I think that's important. And the second question?
The contracts? To be honest with you, I don't have a number we've seen a whole bunch of them. This morning, I think there were four and yesterday in Shanghai there were maybe five. I will have someone get you a number and the details on them and what the companies say they're valued at or what others, but to be honest with you I don't have an amount. Let me thank you all for indulging in this press conference that are here and again thank my hosts, our hosts, for the delegation. Mr. Mayor, we thank you once again and thank the people of Guangzhou for the hospitality as we have been here. Thank you very much.
(end transcript)
Return to The United States and China.Return to IIP Home Page.