Summit talks begin to heal rupture

By Vernon Small

The rift between Asia-Pacific's two great powers began to heal after United States President Bill Clinton and China's President Jiang Zemin met in Auckland at the weekend.

But doubts remain on the fate of China's bid to join the World Trade Organisation, blocked by the US.

The top-level summit at Government House, which was set to be the key issue at the Apec meeting until the East Timor crisis blew up, has kick-started talks broken off in May after the US bombed China's Embassy in Belgrade.

Relations have also been strained by accusations of Chinese spying in the US and by China's human rights record.

If a deal over China's accession to the WTO is not finalised before a new round of global trade talks, expected to be launched at the Seattle WTO meeting in November, China may face a wait of up to two years to join.

US officials said a pact could be reached relatively quickly, but warned that time was running out for a deal before the WTO meeting.

But Chinese officials in Auckland played down the urgency of a settlement, saying it would have no major effect on China's economic growth.

New Zealand has backed China's bid to join the 134-nation group.

President Clinton, criticised domestically for rejecting an offer by China in April, told business leaders that the US was trying hard to reach agreement with China.

Earlier, US Trade Representative Charlene Barshefsky said China's accession must be on "commercially meaningful terms."

In April, the US said outstanding issues included aspects of banking, securities and trade remedy laws.

China wants to join the WTO as a developing nation, which would give it easier terms.

If the US agrees, China will still need the agreement of other countries, including the powerful European Union grouping.