Military

DATE=05/30/03

TYPE=CORRESPONDENT REPORT

TITLE=CHINA/G-8 (L-ONLY)

NUMBER=2-303793

BYLINE=KURT ACHIN

DATELINE=HONG KONG

CONTENT=

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INTRO: China's president, Hun Jintao, is scheduled to attend a conference Saturday connected to the G-8 meeting in Evian, France. As Kurt Achin reports, the visit is an important step for China.

TEXT: The stop in Evian is part of the new Chinese president's first overseas outing, and it is the first-ever direct involvement by a Chinese president in events surrounding the G-8.

China has turned down past invitations to attend G-8 events, but this year's invitation from France comes at a time when both countries have expressed strong support for a multi-polar power structure in the world.

China will not be part of the G-8 summit itself, but will attend a pre-summit meeting on Saturday, along with leaders from Brazil, India, Mexico, and South Africa. Jean-Pierre Cabestan is the director of the French Center for Research on Contemporary China. He calls China's inclusion a "diplomatic nicety."

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The whole issue would be about China's participation in the real G-8 meeting, and the transformation of the G-8 into a G-9.

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The G-8 is not a formal institution and it does not enforce policies. Its members, however, exert control over most international capital via the World Bank and the International Monetary Fund.

China is the only permanent member of the United Nations' security council that is not part of the G-8. Yet, it was recently admitted to the World Trade Organization, and exports about 325-billion dollars worth of goods per year.

China's pre-summit participation is reminiscent of Russia's guest role in the G-7 in the mid-1990s.

But Mr. Cabestan points out a crucial difference.

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Although Russian democracy is not perfect, it's a pluralistic democracy. And that's not the case with China. So, some countries are going to object to China's participation in the full G-8.

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China's one-party, communist system is still grappling with the requirements it must fulfill under its World Trade Organization agreement. Economists say it will take some time before Beijing can truly live up to the G-8's doctrine of "liberalization, stabilization, and privatization."

In the meantime, as China tries to conform to the rules of globalization, the G-8 will continue to dictate those rules, even if only informally. But Saturday's meeting is likely to prove useful to participants in several ways.

For China, involvement in another international organization enhances its prestige and influence. For G-8 members, it is another link to a country experts say can no longer be bypassed when it comes to international affairs. (signed)

NEB/HK/KA/MH/KBK/TW