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    China Business
     Jun 23, 2007
Page 1 of 2
SPEAKING FREELY
Washington's China policy turns psychotic
By Donald Alford Weadon and Carol A Kalinoski

Speaking Freely is an Asia Times Online feature that allows guest writers to have their say. Please click here if you are interested in contributing.

Late last year, we surveyed what passed for US policy toward China (Washington's schizophrenic China policy, Asia Times Online, December 5, 2006) and observed that the United States



was not capable of creating a consistent and sustainable position on trade issues where there is a glimmer of "mutual benefit", and, as a result, the Chinese will in essence go through the motions of dialogue, providing the US a scintilla of dignity but absolutely no tangible results. Now, there is evidence that the US has lost its grip on strategic and economic reality.

The US-China policy Apache dance has adversely affected a remarkable number of high-level governmental delegations. In December, US Treasury Secretary Henry Paulson and Federal Reserve chairman Ben Bernanke led an unprecedented pride of cabinet secretaries to Beijing for a week of high-level, high-stakes consultations termed the Strategic Economic Dialogue, addressing topics including market access, intellectual-property protection and the remarkable US trade deficit with China. Little, if anything, was accomplished save for the scheduling of another meeting in Washington, DC.

This second meeting, held last month, concluded with similar results. By that time the atmosphere had grown more toxic, leading the head of the Chinese delegation, Vice Prime Minister Wu Yi, to suggest darkly that she might not participate in the meeting at all. But she came and, predictably, the concluding communique was empty save for only another direct air route to China being approved. And yes, another high-level meeting was scheduled for next December in Beijing.

These past weeks, however, saw the many opponents of engagement with China busily seeking to disrupt the evolving US-China relationship. Many cold warriors sought to blow on the dying embers of a failed post-communist US trade and security policy in their efforts at threat-mongering. As "threat" means funding in Washington, DC, there is no end of experts and consultants offering to gauge the Chinese threat (if not creating it out of whole cloth) for the US government - for a fee, of course. There are few takers for those who seek to lay out a long-term, informed strategy for engagement with the emerging economic engine of China, or its global political consequences (see China eroding US dominance, Asia Times Online, December 8, 2005).

Whether from the dubious pulpits of certain Washington "think-tanks" known for their record of incitement and hostility to China (American Enterprise Institute) to the congressional US-China Economic and Security and Review Committee (whose objective is to highlight the Chinese "threat", and which hosts regular hearings featuring "experts" whose viewpoints are considered one-sided at best among respected US China scholars), there are many voices who urge that the US maintain distance from this burgeoning "enemy". But internally, there are elements of the US administration and Congress who through word and deed express their hostility to the new China and indicate that the divide between pragmatic policy and the "ideology as usual" is growing wider.

Nowhere is this more evident than in several self-contradictory elements of US policy formulation with respect to the Chinese defense establishment. The well-documented military-modernization effort by China, which has spanned a decade, only recently was "discovered" by US neo-conservative military fabulists and their acolytes, notably at the US Bureau of Industry and Security (BIS), which was widely discredited when it sought to restrict engineers, academics and high-technology experts who were born in China (but may have lived their lives as citizens of allied countries) from having access to US-controlled technology or related employment (New US export controls threaten China trade, Asia Times Online, January 11, 2006).

Ostensibly prompted by a superseded Department of Defense annual study on Chinese military modernization, BIS stunned US industry and the Chinese alike in 2005 by proposing unilateral control on previously multilaterally decontrolled commodities and technologies, which would roll back US export-control policy to China to pre-1981 levels. Uniformly panned by the exporting community and China alike, BIS continued to maintain the importance of the proposed rule (US blunders on with China military-export rule, Asia Times Online, September 23, 2006) and its "significant benefits" to US-China trade. BIS published on June 19 the "Final Rule", and in wondrously optimistic pronouncements portraying the Rule as a "passport to prosperity", or so said new BIS under secretary Mario Mancuso at a recent roll-out event at the Washington-based US China Business Council. "The Rule is the beginning of new, enhanced opportunities for trade ... to win, to compete and to prosper in the hyper-competitive China market," noted Mancuso.

Strangely, however, Defense Secretary Robert Gates appears not to have gotten the word, and is probably wondering why the Chinese think he may have been speaking out of both sides of his mouth when he recently called for the elimination of "distrust and secrecy" at the Shangri-La Dialogue in Singapore. Gates' conciliatory statements echoed a softened Defense Department

Continued 1 2 


China, US: A long, hot summer (Jun 12, '07)


1. Careful what you wish for, China may grant it

2. Iran: Conflicting claims reveal US rift

3. Olympic flame a burning issue for China

4. Tony Blair as Middle East czar 

5. Taliban losing the will to talk

6. Japan goes prospecting for rare metals

7. 'Unfounded, exaggerated and ill-intentioned'

(24 hours to 11.59pm ET, June 21, 2007)

 
 



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