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    Greater China
     Mar 8, 2008
China card still wild in White House race
By Jing-dong Yuan

MONTEREY, California - During the 1992 presidential campaign in the United States, Democratic candidate Bill Clinton accused George H W Bush of "kowtowing to butchers" from Baghdad to Beijing and vowed to put human rights at the top of his agenda with China. Eight years later, Republican candidate George W Bush dismissed president Clinton's engagement policy toward China and termed the latter as a strategic competitor of the US.

Compared to 1992 and 2000, the 2008 presidential primaries have left China more or less unscathed, so far. The candidates have focused on issues such as the Iraq war, health care, the housing slump and the impending economic recession, among others. But this may change this summer once both parties have selected their presidential nominees.

By far the most serious concern for the two Democratic




candidates, Senators Hillary Clinton and Barack Obama, is the impact of China's growing economy on the US. In a recent speech at George Washington University, Clinton accused China of not playing by the rules in the global marketplace, exporting tainted food and unsafe toys to America, and manipulating currency. Both Clinton and Obama were among the Senate sponsors of a bill last year that threatens punitive duties on Chinese goods to force Beijing to revaluate the yuan.

Senator John McCain, the Republican presidential nominee, advocates a policy of "hedging" against China's growing global and regional influence by strengthening US alliances and maintaining its military presence in East Asia. McCain challenges Beijing to be more transparent about its military buildup and pledges to push China on human right issues. Obama views China as "neither our enemy nor our friend" and recognizes that China offers both challenges and opportunities.

Sino-US relations will reach a critical juncture in 2008. The administration of President Hu Jintao and Prime Minister Wen Jiabao is entering its second term and a new US president will be elected in November. While the campaign rhetoric gives some indication of what the candidates' policy priorities are, the real impact of the US presidential elections on the bilateral relationship may turn out to be different from what campaign statements suggest.

On the security front, Washington is obviously watching China's growing military power closely. The People's Liberation Army has received another double-digit increase in defense budget to US$59 billion, a 17.6% rise over last year. The just-released Department of Defense annual report on the Chinese military points to the latter's growing ambitions in space as a potential threat to US security. Recent reports draw attention to China's growing maritime power and naval buildup. The Pentagon report decries lack of transparency on China's part.

Whether or not China constitutes a serious threat to US security remains unresolved. The George W Bush administration has been making efforts in engaging China on military matters. High-level visits and defense consultation have become more frequent and regularized. The two countries have just agreed to set up a military hotline and plans for joint exercises. Meanwhile, Washington continues its hedging strategy by strengthening ties with its allies and friends in the region.

Economic issues will likely be emphasized in presidential debates in the final months before the November vote. The Clinton-Obama spat on the North American Free Trade Agreement would suggest that whomever the Democratic presidential nominee is, she or he will blame China for some of the economic ills that America is suffering: skyrocketing trade deficits and loss of manufacturing jobs; currency manipulation; violation of intellectual property rights; safety of China-made goods. This will appeal to the party's labor and union bases. The Bush administration will likely be criticized for its failure to act tough on China.

But reality and common sense, not to mention shared interests, will most likely trump the campaign rhetoric when the new US president moves into the White House. The reasons are simple: Washington stands to hurt itself as much as, or more, than it hurts Beijing because the relationship is complex, interdependent and important.

The complexity arises because Washington and Beijing have major differences on some issues but share common interests in others. The latter includes resolution to the North Korean and Iranian nuclear issues, cooperation in the "war on terror", and combating the proliferation of weapons of mass destruction. China is also becoming increasingly important - and increasingly cooperative - in addressing other important issues ranging from climate change to humanitarian intervention in Darfur, Sudan.

The relationship is also interdependent. China's economic growth benefits from and relies on the US market, capital and technologies. American consumers, on the other hand, have benefited from low-priced Chinese goods as well as China's holding of US Treasury bills that keep interest rates low. Protectionism, however, will not get the lost manufacturing jobs back. Instead, Washington should work on demanding fair treatment from Beijing on market access, protection of intellectual property, and measures that leverage the US's comparative advantage.

Sino-US relations are perhaps the most important bilateral ties in the world today. One is a fast-rising power; the other the reigning superpower. Managing such a relationship has never been easy, but its successful management is critical for global peace and security. For China, the next five years will continue to focus on economic development and equality; demographic change and environment; efficient governance; managing the Taiwan issue; and a more active international role. Beijing may disapprove of some of Washington's policies, but it has no intention of challenging America's dominant position.

The US presidential elections offer new opportunities to debate China policy and chart a new course for bilateral relations. Rhetoric notwithstanding - and it could be harsh on China - one would hope that it will remain as such while realities and sound judgment carry the day and guide the new administration in formulating and executing its China policy.

Dr Jing-dong Yuan is director of East Asia Non-proliferation Program at the James Martin Center for Non-proliferation Studies, and an associate professor of International Policy Studies at the Monterey Institute of International Studies.

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For Sino-US ties, cautious
progress
 (Dec 22, '07)

China, US in search of a level playing field (May 10, '07)

US-China military ties warm with hotline (May 10, '07)


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