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U.S. - China Sees Change From War to Economics
By Franz Schurmann, Pacific News Service, April 20, 2001

A view of China as a customer rather than a threat seems to inform us the Bush administration's policy in the Pacific. This has ruffled the feathers of hawks in a number of countries, but may reflect the will of all who are directly concerned with the matter. PNS editor Franz Schurmann, professor emeritus of history and sociology at UC-Berkeley, is author of numerous books on foreign affairs.

America's armchair hawks are about to be badly disappointed again. Their bellowing and fist-shaking about the "China threat" is only helping bring about a new U.S.-China relationship marked by business and more business.

The giveaway is President Bush's appointment of Clark Randt, Jr., his Yale classmate and expert on Chinese business, as U.S. ambassador to Beijing. He succeeds retired Admiral Joseph Prueher, the U.S. official in charge of negotiating the release of the spy plane's crew.

Shortly after his election victory was certified, Bush's team leaked information that the new president would name a businessman to succeed Prueher. Since this was the only hint of any ambassadorial appointment, it indicated China's top ranking in the mind of the new administration. The first foreign dignitary who Secretary of State Colin Powell spoke to after he was sworn in was Li Zhaoxing, the outgoing Chinese ambassador.

Another give-away was the timing of the announcement of Randt's appointment. The day before, Fed Chairman Alan Greenspan astonished the business world with an unexpected interest rate cut and markets all over the world soared.

The following day, Deputy Undersecretary of Defense Peter Verga, who led U.S. team in Beijing negotiating for return of the spy plane sounded a positive note, saying that negotiations will continue and agreement is expected.

If it is to avoid recession, the United States will have to sell a lot of goods abroad -- first and foremost in Asia, where China is by far the biggest market.

China's "Western Development Project" (WDP) is reminiscent of similar public works projects in America's west around a century ago. Not only are American businesses ready to put money into the WDP, but so is Taiwan.

Much of the "China threat" bellowing refers to protecting Taiwan militarily from Mainland attack. The Chinese-language Sing Tao Daily reported on April 18 that Representative Bob Stump (Rep., Arizona) called for the sale of U.S. destroyers equipped with the advanced Aegis radar system to Taiwan.

But on the front page, the paper prominently displayed a story saying that Bush's top advisers recommended against the Aegis sale.

Not all Taiwanese are eager to get advanced U.S. arms. The most widely read pro-Taiwan newspaper in America, the World Journal, editorialized April 18, "We must not let hawkish opinion guide the spy plane negotiations."

The fact is that most Taiwanese now see their economic future in Mainland China. They want their government to come to terms with the Mainland and open wide the doors now closed to large-scale investment. And they want the American government to back them.

But there are political operatives in Taiwan, headed by former President Lee Teng-hui -- widely known as the "pro-Japan faction" -- that wants the conservative Japanese government to tilt towards them.

Envision an alliance of Taiwan, Japan and the U.S. aimed squarely at China. That also is the ultimate aim of the "China threat" hawks in the U.S.

As Washington was waffling on the Aegis sale, Lee Teng-hui applied for a Japanese visa so he could be treated for a heart condition. The lame duck Mori administration was at a loss what to do -- the Foreign Office recommended not granting a visa, but the government's ultra-right wing wanted a visa granted.

The result was a compromise that will restrict his presence to the town of Kurashiki in Okayama prefecture where he will be medically treated. Though Beijing will keep on protesting, the image of Lee projected will be one of a former president treated like an illegal alien.

Taiwan President Chen Shui-bian had asked for a regular visa, but Japanese Foreign Minister Kono Yohei, the most powerful figure in the Mori cabinet, said no.

After years of trying to get their country into a more military and economic mood, the Japanese "China threat" faction may now give up. The last thing most Japanese -- and most Taiwanese and China Mainlanders -- want is any kind of war, be it hot or cold. The denial of a regular visa to Lee shows that the Japanese "China threat" faction, despite its membership in the government, did not have the power to impose their views.

Nor can its American counterparts do more than bellow and clench their fists. Meanwhile, corporations of all size are hoping that later this year they will all be laughing on their way to the banks. Of course, if recession should occur in America, then the "China threat" hawks will be back along with their counterparts in Japan and Taiwan.


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