If China opens up segments of its financial services and telecommunications sectors to foreign investors, it would be a major achievement. I believe we made the wrong decision in April in rejecting Chinese Premier Zhu's offer for WTO membership. We now are pursuing the right course in resuming negotiations. I hope they succeed. Once China becomes a WTO member, it can be challenged in WTO dispute-settlement proceedings if it fails to live up to its commitments.
Multilateral tools work better with China than unilateral U.S. actions.
This approach worked in 1996 when we persuaded China to crack down on counterfeit music recordings, computer software, and videos. It worked again when we won market access provisions for our textiles. Chinese membership in the WTO would give a wide range of American goods and services greater access to one of the world's fastest growing economies. Proliferation Proliferation is another difficult issue between us. While China's record on proliferation is clearly mixed, our policy of engagement has produced significant positive steps.