DATE=3/29/2000
TYPE=CORRESPONDENT REPORT
TITLE=CHINA-EU-WTO (L)
NUMBER=2-260715
BYLINE=ROGER WILKISON
DATELINE=BEIJING
CONTENT=

VOICED AT:


INTRO:  Chinese Premier Zhu Rongji has met with 
European Union Trade Commissioner Pascal Lamy amid 
negotiations between the two sides on China's entry 
into the World Trade Organization.  VOA correspondent 
Roger Wilkison reports from Beijing, concluding a deal 
with the E-U is the last major stumbling block in 
Beijing's 14-year quest to join the W-T-O.


TEXT:   Diplomats see auspicious signs in the fact 
Premier Zhu met for nearly an hour and a half with the 
E-U's top trade official.  It was Mr. Zhu, after all, 
who stepped in at the last moment to help forge a 
market-opening deal with the United States last 
November.  The reform-minded premier considers Chinese 
membership in the W-T-O crucial.  His reasoning is 
that it will not only attract badly needed foreign 
investment, but also spur China's state-owned 
companies into becoming leaner and meaner so that they 
can compete internationally.

Other than a terse report from China's state-run news 
agency, describing the Zhu-Lamy talks as friendly and 
frank, there were no other details on the meeting.  
Mr. Lamy and Chinese Foreign Trade Minister Shi 
Guangsheng were scheduled to hold a second day of 
negotiations, as part of the third round of talks this 
year between China and the E-U.

European diplomats caution, however, that the talks 
are still at an early stage and that many obstacles 
must be removed before there are signs of the progress 
that both sides hope for.  The E-U is seeking a better 
deal than the one the United States got, especially in 
the key automotive, insurance and telecommunications 
sectors.  But Chinese officials have said Beijing will 
be hard-pressed to grant Brussels more concessions 
than it gave Washington last year.

European diplomats say Mr. Lamy is ready to walk away 
from the talks if the E-U does not get what it wants.  
But one European commercial attache says he expects 
the talks to go on through the rest of this week, at 
least.

The last round of China-E-U trade talks in February, 
in which Mr. Lamy did not take part, ended in a 
stalemate.  China said a deal was close, but the EU 
insisted that not enough progress had been made.  
(signed)


NEB/RW/FC 



29-Mar-2000 04:36 AM EDT (29-Mar-2000 0936 UTC)
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Source: Voice of America
.