Friday, October 26, 2007

Long Yongtu and WTO


Long Yongtu (龙永图) was the top Chinese trade negotiator who led China into the World Trade Organization (WTO) after a 15-year quest.

According to a 2003 article by Rebecca Lee published in The Straits Times, he was also the man who had opened China's eyes to the world of "win-win."

Long noted that his biggest achievement has been introducing concepts such as a "win-win" outcome to a nation that had previously been closed to such ideas.

Long reportedly said: "(Win-win) is not the language of the Chinese ... but in this world, because of globalization, we all have to strive for a win-win output to attain a good relationship with other countries. If you want to only take advantage of others and benefit at others' loss, then you are bound to reach no agreement. This is a new concept we are trying to introduce, not just to external relationships, but also among the Chinese, so that relationships can be more harmonious."

Turning to the WTO deal that was sealed in 2001, Long said that the most difficult part of the negotiations were those surrounding the opening up of China's telecommunications and insurance industries.

Although the outcome - China will allow up to 50 per cent of foreign investment in these key industries - was far from the totally barrier-free set-up one would expect of a free trade agreement, Long pointed out that this was an example of how both sides had met midway.

Born in Hunan province (湖南省) to working class parents, Long was the eldest and attended school in neighboring Guizhou province (贵州省), one of the poorest provinces in the country.

In 1965, Long graduated with a BA in British and American literature at the top of his class in Guizhou University (贵州大学). In 1973 - during the Cultural Revolution - Long and a few others were sent to study at the London School of Economics as part of a pioneer batch of Chinese students sent by the government to study in a foreign country.

Then Chinese premier Zhou Enlai (周恩来) thought it was important to send students abroad to learn the workings of the international economy, as Chinese delegates at the UN then were "totally lost and unable to grasp the free-market terms used during discussions."

Long admitted that his two years spent in London kept him away from the revolution in China and enabled him to concentrate on his studies. But he still had to work in the countryside from 1969 to 1970, though he concurred that the experience had been a beneficial one for him.

"I know how poor the farmers are. That's why during my trade negotiations, when it comes to issues, especially about agricultural subsidies, I have a greater understanding of how the farmers feel and work ... and we have to take care of them."

After overcoming all obstacles in getting China into the WTO, Long noted that the biggest challenge the country faces was in understanding and integrating the rules into its system.

"Committing to international rules and practices is one thing, but actually implementing them is another."

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