BEIJING (AP) — U.S. Commerce Secretary William Daley today urged Beijing to fulfill promises to develop a CDMA cellphone network using U.S. technology, saying U.S. lawmakers are looking for results in trade talks with China.
Daley said he had received no new assurances from the Chinese, although Premier Zhu Rongji and other officials reiterated their commitment to seeing the technology used in China.
"We believe them. We are hopeful that will happen very shortly," Daley said.
In a speech at an e-commerce conference following two days of meetings with Chinese leaders, Daley said he told Zhu that U.S. lawmakers were "looking for concrete results."
Last month, Zhu acknowledged that the CDMA project had hit bureaucratic snags within the Ministry of Information Industry, but denied reports it had been called off. China Unicom, the country's second-largest telecommunications company, plans to replace its existing cellular network with one using CDMA technology from San Diego, Calif.-based Qualcomm.
CDMA, or code division multiple access, is a digital technology that provides better quality service and reliability and is more easily adapted for Internet applications.
Under a February agreement, Qualcomm would provide its CDMA technology to Chinese cellphone manufacturers at a discounted royalty rate, provided the companies buy their chips from Qualcomm. Several other U.S. corporations, including Lucent Technologies Inc. and Motorola Inc., are also seeking contracts with Unicom.
"It's probably typical bureaucratic delays. Hopefully it is not to encourage local production, but to get their own heads together within the ministry," Daley said.
Despite the lack of concrete progress on CDMA, Daley said after his talks with Chinese Foreign Trade Minister Shi Guangsheng that the two sides had agreed to cooperate on ensuring that Chinese laws conform with World Trade Organization requirements. They also agreed to launch a program to help resolve commercial disputes and on several trade missions and promotional events.
"I am reassured that China is firmly committed to fulfill its WTO obligations," Daley said.
Daley told Shi that President Clinton is working hard to win congressional approval for permanent low-tariff trade rights for China.
If approved, the permanent status would scrap the current annual reviews and give Beijing the same treatment normally accorded other trading partners. It is part of a U.S.-China agreement reached in November to smooth Beijing's entry into the WTO, which makes rules for world trade. China has been seeking membership in the Geneva-based body for 14 years.
The House of Representatives will take up the issue during the week of May 22-26. Labor unions and some lawmakers oppose the change.
Trade Minister Shi said his side had strongly emphasized the importance of winning permanent low-tariff status. "We absolutely must ensure that this agreement is implemented well. That is our main goal," he said.
Beijing has threatened to withhold liberalized market access for American imports if the permanent status is not approved.