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BUSINESS
March 2001 Issue

B
The Bush Administration and China

By Dr Eden Woon
Although George W Bush's father is someone whom the Chinese know well
and believe to have a positive view of U.S.-China relations, the election of George
senior's son to the U.S. presidency produced some anxiety in China. This anxiety not only
stems from the reaction to the usual rhetoric during a U.S. presidential campaign, when
any candidate who expresses warmth to China would be severely attacked by his opponents,
it also stems from perceptions of certain policy inclinations of George W.
Now that the inauguration is two months old, what will President George
W. Bush's China policy look like?
The term "strategic competitor," which he coined during the
campaign, should continue to be his administration's view of China. But does that
necessarily mean it is an unfriendly relationship? We do not believe so, but it will not
be a smooth relationship. Therefore, what will be the issues in U.S.-China relations in
the next few years?
During the Bush administration, six issues will dominate U.S.-China
relations: strategic support; Taiwan; national missile defence; Japan; human rights; and
trade.
Strategic Support
This administration will be more concerned than the
previous one on how China supports the U.S. in the world stage, especially in the United
Nations. The recent accusation that Chinese technicians were helping to upgrade the air
defence system of Iraq in contravention of UN sanctions is the type that, if true, this
administration takes very seriously.
Proliferation problems dealt with in a quieter way by the Clinton
administration will be dealt with less patiently by the Bush people. The U.S. will be
harsher with sanctions if China transfers missile technology to Pakistan. The U.S. will be
expecting more from China for help on the Korean peninsula peace process. The U.S. will
also be less tolerant of illegal technology transfers to China. In short, the
geo-strategic thinkers in the Bush administration, now without a Russian "bad
guy" in the world, will be quite demanding of China on cooperation on what the U.S.
believes to be critical geo-strategic and security issues.
This, of course, can play positively if the Chinese leadership decides
to cooperate more in the tense spots of the world, as they did during the Gulf War 10
years ago. But whether the Chinese behaviour on the world stage will be to the liking of
the Bush administration will depend on how Beijing sees its own interests around the
globe.
Taiwan
Although the Bush administration, as with many
Americans, may sympathise with a democratic Taiwan, it will not consider Taiwan as an
ideological issue, but as an issue which should be used as leverage in U.S.-China
relations. In other words, any moves by the U.S. in favour of Taiwan will be considered in
the context of U.S.-China relations. This is not to say that the U.S. will shy away from
making decisions in favour of Taiwan for fear of offending China, but it does mean that
Taiwan will be looked at strategically and as a chip in American dealings with China.
Of course, more right-wing elements of the Republican Party would like
to favour Taiwan more purely on a pro-Taiwan, anti-China ideological basis, but the
mainstream will take a more pragmatic and strategic view. China should not take that as a
sign of U.S. weakness on Taiwan, but Taiwan should not take for granted Bush
administration support for everything it wants either.
National Missile Defence
This is probably the single most worrisome issue for
this relationship. The defence establishment in the new Bush administration is firmly in
favour of deploying this system. This deployment is strongly opposed by the Chinese
leadership, who will react for certain with missile and nuclear developments that will
introduce instability in the Asia-Pacific region and damage U.S.-China relations. It is
very difficult politically for President Bush to now forego the development of NMD, and
unless technical difficulties are insurmountable, or unless China and the U.S. somehow
come up with a mutually acceptable compromise on NMD, this issue has serious consequences
for long-term U.S.-China relational stability.
Japan
The Bush administration has made it clear that its
Asian strategy will be centred on Japan. This of course irks the Chinese, just as the
Japanese were irked that Bill Clinton seemed to have placed more emphasis on U.S.-China
relations. How Japan behaves towards China in its alliance with the U.S., especially in
Japan's dealings with Taiwan, will affect how China views U.S.-Japan alliance. If it looks
at this with increasing alarm, then China will likely react by being cosier with Russia
and being less helpful with resolving any Korean peninsula problems. If a balance can be
sought with the three players, Japan, U.S., and China, then they could actually form a
formidable stable triangle for Asia.
Given the poor start the new administration has had with improving
relations with Japan, especially after the sinking of the Japanese fishing vessel by the
submarine USS Greeneville, Japan perhaps is not an immediate factor in U.S.-China
relations. But in time, this will be a strategic issue that will concern China.
Human Rights
Human rights in China will continue to be a top
priority domestic issue for the U.S. The special interest groups in the U.S. will not let
this issue rest, and there will be constant pressure on the administration to deal with
China forcefully on this issue. However, just as with the Taiwan issue, this dealing will
not be from an ideological basis but from the basis of how to do it in the context of the
overall relationship with China. The domestic political pressure in the U.S. will never
allow the administration not to address this issue, but how and when to do it will be more
flexibly handled. Unfortunately for the new administration, how to address the Chinese
leadership ?always very sensitive on human rights criticism ?on the thorny Falun Gong
issue will be the toughest problem the new administration will face on human rights, and
it has to do so immediately.
Trade
Trade should be the issue that binds the two
countries together. But this is now hampered by a lack of mid-level U.S. negotiators in
place, by the inexperienced U.S. trade leadership for the moment, and by the current
difficulties in Geneva over China's WTO accession. Differences of opinion on agricultural
subsidies and on the speed of service sector opening are stalling the negotiations in
Geneva without the U.S. taking the lead by giving them a push. Unfortunately, there is
little time left for China to get into the WTO before the Permanent Normal Trade Relations
vote comes up once again in June in Congress. The reason that it comes up again is because
PNTR for China was passed last June contingent on China getting into the WTO. Since it may
very well not be in the WTO by June, an annual review is necessary once again, and PNTR
would have to be passed once again. And no one wants that to happen in an administration
facing a split Senate and having no firm China or trade policy in place.
We can only hope that the problems in Geneva can be resolved quickly
with compromises by all sides and that China will get into the WTO soon. If that happens,
trade will start playing a positive role in U.S.-China relations. We should not be so
sanguine that trade will not cause any problems, but having more U.S. businesses wanting
to take advantage of the China market and having disputes pushed to the multilateral arena
of Geneva are good for the bilateral relationship between China and the U.S.
Conclusion
Four of the six possible bilateral problems between
China and the United States can be categorised in the foreign policy/geo-strategic realm.
The fifth is driven a great deal by domestic politics in the U.S. Only the final issue has
a better than even chance that it will be a positive factor ?although that will be fraught
with problems too. Hence U.S.-China relations will not be smooth. Much will depend on
Chinese domestic politics, on how China views U.S., and on China's own view of its place
in the world.
The Bush administration foreign policy senior ranks are filled with
strategic thinkers, and some may border on being strongly suspicious of China, but the
ideologues are not in control of U.S.-China relations. The latter can also be said of U.S.
Congress, who will play politics with China, but not in an ideological way. Cultivating
good relations with China will be an ultimate goal of the Bush administration, but it will
do so in a firmer, more consistent, and more realistic way. B
Dr Eden Woon is Director of the HKGCC. He served as China policy
adviser to then U.S. Defence Secretary Dick Cheney, during the Bush senior administration.
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