Council Activities

Council's 26th Annual Meeting Highlights Bilateral Tensions

The morning plenary session began with Harry Harding, dean of the Elliott School of International Affairs and professor of Political Science and International Affairs at the George Washington University. Harding analyzed the recent damage done to US-China relations by the failure to sign an agreement on China's World Trade Organization accession terms during Premier Zhu Rongji's April trip to the United States; the bombing of the PRC Embassy in Belgrade by NATO forces and subsequent demonstrations in China; and the release of the report of the US House of Representatives Select Committee on US National Security and Military/Commercial Concerns with the People's Republic of China (the Cox Commission). Harding noted that, should bilateral relations fail to improve, US business could expect a more competitive bilateral relationship, in which cooperation would be more episodic. Harding pinpointed WTO negotiations and the US apology for the bombing as issues to watch.

Next, Carol Lee Hamrin, a senior China research specialist at the US Department of State, spoke in a private capacity about how the United States has traditionally viewed China. She also addressed China's domestic situation, focusing on the challenges facing the PRC government not only in guiding the transition to a market economy, but also in becoming a more accountable government.

Sheila Melvin, the director of the US-China Business Council's Shanghai office, wrapped up the morning session, presenting an on-the-ground perspective of the aftermath in China of the NATO bombing of the PRC Embassy. She compared the reactions in different Chinese cities, and discussed the social and political forces behind the protests. She also detailed the effects of the bombing on foreign businesses and the strategies used by some to deal with the situation (see p.4). Melvin highlighted the WTO rhetoric in China before and after the bombing, as well as the government's efforts to separate trade and politics--a new move for Beijing.

The first of the meeting's three afternoon sessions focused on investment options and featured Bonnie Y. M. Chan of Skadden, Arps, Slate, Meagher & Flom; Charles J. Conroy, of Baker & McKenzie; and Hugo Shong of International Data Group. They discussed mergers and acquisitions, joint stock companies, and venture capital investment.

Attendees of the intellectual property rights workshop heard from Preston M. Torbert of Baker & McKenzie's China Practice Group and William A. Finkelstein of PepsiCo, Inc. Torbert discussed current options to protect IPR, including civil and criminal litigation and customs authority. He focused on trademark infringement, the biggest intellectual property problem in China, and highlighted various punishments for IP infringement. Finkelstein detailed the range of IPR enforcement methods available to foreign companies.

Speaking at the workshop on US high-technology exports to China were Roger Majak of the US Department of Commerce Bureau of Export Administration, Francis C. Record of the House International Relations Committee, and Christopher Hankin of NCR Corp. The speakers discussed supercomputer exports, China's domestic supercomputer development, and end-use enforcement, particularly licensing conditions and policies.

Council Board Welcomes Eleven

Executives joining the Council's Board include the following: Roger G. Ackerman, Chairman and CEO, Corning Incorporated; Carleton S. Fiorina, Group President, Global Service Provider Business, Lucent Technologies; Durk I. Jager, President and CEO, The Procter & Gamble Company; L. Oakley Johnson, Senior Vice President, Corporate and International Affairs, American International Group, Inc.; J. Bennett Johnston, Chairman, Johnston Development Co., LLC; Sean Maloney, Senior Vice President and Director, Sales & Marketing Group, Intel Corporation; Patrick J. Martin, Senior Vice President - Developing Markets Operations, Xerox Corporation; Terence H. Thorn, International Government Relations and Environmental Affairs, Enron International; Morton L. Topfer, Vice Chairman, Dell Computer Corporation; Henry Wallace, Group Vice President, Ford Motor Company; Lawrence B. Zahner, President, GM China Operations, General Motors Overseas Corporation.

In addition to Mr. Bonsignore, the Council's officers for the coming year include Ambassador Carla A. Hills (Hills & Co.) and Frederick W. Smith (FDX Corporation) as vice chairmen; Edgar Hotard (Praxair, Inc.) as secretary-treasurer; Larry L. Simms (Gibson, Dunn & Crutcher LLP) as counsel, and Robert A. Kapp as president.