CHINA has been told to produce a credible series of tariff reductions in industrial and agricultural goods by July, or face jeopardising its long sought-after early entry into the World Trade Organisation (WTO). Wrapping up the latest round of WTO talks, negotiators said the package of tariff reductions would also need to be followed by an equally effective offer to sweep away restrictions on foreign involvement in mainland services. The market access commitments being sought from China are seen as crucial to maintaining momentum at the talks. Diplomats intend to meet again in July to review any further progress, and China's key trading partners are looking for a substantial package to secure the outline of an agreement in time for the November summit between Chinese President Jiang Zemin and US President Bill Clinton. Negotiators said all sides were eager for developments outside the trade arena, and want allegations in Washington that China illegally funded the Democrat election campaign kept well away from the WTO talks. Senior negotiators said modest progress was made last week at the Geneva talks, with China accepting the WTO principle of non-discrimination, which would end dual pricing systems and ensure that local and foreign firms are treated equally. China has also submitted to establishing a judicial review system, which would be the first port of call for the resolution of trade disputes. China's chief WTO negotiator, Long Yongtu, said: 'The agreement reached on these two provisions is of great significance and will have an important commercial value for the 140,000 joint ventures and wholly owned foreign enterprises operating in China.' China has acknowledged the need to build on the progress made by providing acceptable market access offers, but called upon the WTO to be as flexible and understanding as it had been in the discussion on the draft protocol that determines what China's trade regime should be. 'We need understanding of the reality of China's economic and social development,' Mr Long said. 'We need the similar flexibility and co-operation demonstrated in the discussion of the draft protocol.' Mr Long said he would need time to draw up an acceptable services offer so he could talk with the different ministries dealing with China's various service sectors. Negotiators were looking, in services, for China to lift the 'quantitative and qualitative geographical restrictions' that exist, one negotiator said. This would mean allowing any number of foreign firms, such as banks, retailers, shipping companies and law firms, to establish in any number of cities or towns. In industrial and farm goods' reductions, trading partners want items such as car tariffs drastically reduced. The European Commission has already said it would accept reductions to an average of 6 to 8 per cent across the board. Reductions to this level would still leave China at twice the average tariff level of developed nations.