By John S. McClenahen China's formal entry into the World Trade Organization, expected to occur in early 2002, promises considerable economic benefits for both the People's Republic and the U.S., emphasizes a new report from the Council on Foreign Relations, New York. But, it also says, significant challenges lie ahead. Specifically, there's the risk of a political backlash in the U.S. if U.S. industry and workers don't quickly benefit from China's entry into the WTO -- and if China's trade surplus grows too rapidly, warns the report. Indeed, U.S. manufacturers will be closely watching Chinese pledges to lower tariffs on a wide range of goods and eliminate nontariff barriers in key industrial sectors. In 2000, the U.S. ran an $83.8 billion manufactured-goods trade deficit with China.