On a commercial level, China has been tackling its internal debt since 1993 when then vice premier Zhu Rongji, well ahead of the Asian crisis, spotted the problem of nonperforming loans in the banking system. Here the situation is improving and will improve further in the next years. Thus it will be very difficult to curtail Chinese exports without affecting those of Washington's Asian allies keen on trading with Beijing. Even the tension point of Taiwan looks very different under close examination. Last year, Taiwanese investment on the mainland doubled.
Chips are Taiwan's strategic production.
Moreover, the number of Taiwanese businessmen investing in the mainland increased by nearly 18 percent compared with an year earlier, and the percentage of Taiwanese businesses that have yet to consider investing in the mainland has been cut from 52 percent three years ago to 21 percent in 2000. Seventy-two percent of Taiwanese businesses on the mainland are mainly involved in manufacturing and production. This leaves very little else. Further, stalling China's entry in the WTO could push Beijing into bilateral agreements with its neighbors. These would benefit China while hurting American business interests.