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1 (March 30, 1999)

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Order Code RS20135
     March 30, 1999


China-U.S. Summitry: Premier Zhu Rongji's
                      April 1999 Visit

                           Kerry Dumbaugh
                      Specialist in Asian Affairs
             Foreign Affairs, Defense, and Trade Division


Summary


     On Apil 8, 1999, Premier Zhu Rongji wIl gin bhis first official visit to the Uited
 States slince his selectioni as Cinfa's Pimie Minister inl March 1998. ZhuL'S vi]sit is aniother
 111~imprant Step inl a seeingiily perenniial effort to imiprov e U,.S.-Chlina r-elationis. AlthloughY
 Ui.S. policymiaers have tried to lower expectatins about the visit's potenitial
 acievemients,thier-e iswidespriead speclationi that a deal miay be inl the w\orksthat could
 pav e the w\ay for Ch Iina's access]in to the Worl d Trade Orgai1zati on (WVTO), a mllatter
 under negotiation for over a  decade nol. Plemie Zh  has been candid about his hopes
 for_ such anl agreemient. Bu~t both U.S. anid Chinlese gYOvernImenit officials remiali
 hiamistrungl( by domiestic political conistr-aints that miay miae it difficlt to reach
 accommiiodationi Onl substanitive miatters. President Clinitoni is already under fire for his
 Chlina policy, w\hich somie critics allege has miade too manym conicessins to Be*ijig anid
 has evenl comiproised U.S. niatinal secuity. Althoughl ZhuL is inl a strong(er positioni at
 homie, his ablity, to miae conicessins su~fficienlt for WVTO accessioni is conistr-ained by
 China's gYrow\ingY econioic, political, anid social problemis, somie of w\hich are the r~eslt
 of niew, p~aliful reforms chamipined by ZhuL himiself. Any\ agreemient onl WTO that miay
 comle ou~t Of thle ZhuL v isit IS therefor-e lik ely to be challeng-ed by k ey constitu~encies Inl
 both countries.



 Background to Current U.S.-China Troubles

     For the past decade, the U.S.-China relationship has continued to seesaw between
notable improvements and frustrating setbacks. Eighteen months ago, much about the
relationship appeared destined to improve its prospects. Clinton Administration officials
continued to emphasize dialogue and engagement with Chinese leaders, and they believed
that China had made important shifts in its willingness to abide by international
agreements, such as in its decision to minimize nuclear cooperation with Iran. Hong
Kong's reversion to Chinese rule, anticipated with trepidation, occurred without incident
on July 1, 1997. And despite the devastating financial crisis that affected all major Asian
countries beginning in late 1997, China appeared to be weathering the cri si s relatively well,


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