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July 26 "China and the WTO: U.S. Interests" with Dr. Robert Kapp, President, U.S.-China Business Council

Since the passage of PNTR, Dr. Kapp stated that the U.S. has shifted its focus from trade-related issues with China to those surrounding security concerns. He believes a balanced dialogue between the economy and security is an important feature in the long-term relationship between the two countries. As China's domestic economy undergoes a restructuring period, it is important to have institutional stability. Problems with which the national government must contend and are seen as destabilizing forces range from chain of command issues, corruption, abuse of one's privileges, and overall lack of enforcement. Dr. Kapp also pointed out that China is experiencing a late socialist dilemma and faces the challenges of absorbing 70 plus million people into non-rural jobs. Given that there is little or no social safety net, many Chinese must deal with unemployment due to lost state owned factory jobs and lack of modern skills and education. Kapp stated that the Chinese government worries about the ill effects of general disorder and, like wide-ranging East Asian practices, tends to intervene on many levels in order to maintain overall domestic control.
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