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-FEBRUARY, 1996- |
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U.S.-China relations at lowest point in a decade
February 26, 1996 Web posted at: 5:00 p.m. EST
From Correspondent Fred Katayama
NEW YORK (CNN) -- Political relations between China and the United States have deteriorated so rapidly in the past year that U.S. business interests are worried that their investment plans on the Mainland could be delayed, or even postponed indefinitely.
Since an amicable summit conference between U.S. and Chinese leaders in 1995, the two nations have increasingly been at odds. Washington has expressed displeasure that the Chinese have failed to enforce international copyright law violations and have allegedly sold nuclear technology to Pakistan, both charges that Beijing denies.
When the recent Chinese military intimidation of Taiwan and longstanding U.S.-Sino disputes over human rights, and its easy to see why David Lampton, president of the National Committee on U.S.- China Relations said, "I think it would be fair to say that U.S.-China relations is in the worst shape I have seen it in since 1982, when Reagan was nominated and threatened to upgrade relations with Taiwan."
Secretary of State Warren Christopher said no decision has been made about whether to impose any sanctions on the Chinese for their alleged nuclear sales to Pakistan.
But big business in Japan is saying that any restrictions would harm their efforts to develop the Chinese markets because Beijing would invariably retaliate and delay American investments and sales.
Westinghouse Electric, one of many heavy industry companies that hopes to profit big in China, has a $23 million order for generator parts that is backed by a U.S. loan guarantee.
"The imposition of sanctions will have a serious and negative impact on the ability of U.S. companies to compete in the international marketplace," a Westinghouse spokesman in Washington said.
U.S. companies have quintupled their investment in China to $2.5 billion in the past four years, and experts say that they cannot afford to slow down the pace if they want to be a factor in China's economic future.
"U.S. businesses can't afford to wait because European companies will venture to establish relations for the long term in China," said Kimberly Hoover, a lawyer with international experience at Dickstein, Shapiro and Morin.
The State Department is slated to release a report on human rights in China this month, and in June President Clinton will decide whether to renew China's preferential trading status. Until then, it seems unlikely that relations between the two countries will improve dramatically.
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China, Taiwan locked in battle of military one-upmanship
Both are buying new warplanes
February 8, 1996 Web posted at: 2:15 p.m. EST (1915 GMT)
From Bureau Chief Andrea Koppel and wire reports
BEIJING (CNN) -- Only one day after Russia announced it would sell sophisticated warplanes to China, Beijing said Thursday the threat of military conflict with Taiwan won't fade until the United States stops selling advanced aircraft to Taipei.
Delivery of the first batch of 150 U.S.-built F-16 fighters that Washington promised in 1992 to sell to Taiwan is now only months away. Also in a few months, the island nation should receive some of the 60 French-made Mirage fighter bombers it has purchased.
What had been eagerly anticipated as a big shot in the arm to the Taiwanese military has been somewhat diminished by Russia's agreement to sell Beijing up to 72 high-performance SU-27 fighter planes and the technology to build them.
"As a sovereign country, China is fully entitled to purchase limited quantities of defensive equipment from any country, including Russia," Foreign Ministry spokesman Shen Guofang said at a news briefing Thursday in Beijing.
In Washington Wednesday, President Clinton said he is confident the countries won't revert to an armed clash, because too much is at stake.
He reiterated Washington's "one China" policy that recognizes Beijing as the seat of China's government, and urged leaders in Beijing and Taipei to work out their differences peacefully.
"Major blow to Taiwan"
The sale of Russian warplanes to China "is a major blow to Taiwan," said China analyst Tai Ming Cheung.
However, western diplomats told CNN that even if China obtains the Russian know-how to build the supersonic war plane, it would be another five to ten years before China could seriously challenge Taiwan. In addition, the diplomats said, China will have to train enough pilots and properly maintain the planes it builds. Taiwanese pilots, on the other hand, already have been training overseas for more than a year to fly the F-16s and the Mirage.
War games meant as threat
China's deal with Russia comes as Chinese leaders increase verbal threats to use force against Taiwan if it declares independence or if outsiders interfere. There have been unconfirmed reports that China could begin another round of large-scale military exercises this weekend in waters off Taiwan.
Analysts say the war games are designed to frighten Taiwan's 21 million citizens before they go to the polls on March 23 for the island's first democratic presidential election.
"They are disturbed by consecutive military exercises . . . and concerned about how to prepare themselves in a war situation," said Andrew Yang of the Council for Advanced Policy Studies.
Military exercises aside, the last thing anyone in China wants is a war. While the acquisition of some of Russia's best supersonic warplanes sounds ominous, Beijing sees it simply as leveling the playing field across the Taiwan Straits.
Beijing and Taipei have been diplomatic rivals since the end of the Chinese civil war in 1949. China considers Taiwan a rebel province and has sought to push it into diplomatic isolation.
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Taiwan angered by China's 'threats'
Both countries stage military exercises
February 6, 1996 Web posted at: 7 p.m. (2400 GMT)
TAIPEI, Taiwan (CNN) -- Taiwan President Lee Teng-hui vowed Tuesday that his country will stand up to "threats and coercion" from rival China.
Lee made the comments one day after a newspaper reported that Beijing plans to stage a military exercise near Taiwan this week. Taiwan's defense ministry held a military exercise of its own on Tuesday.
China issued a blistering attack on Lee and another leading candidate in Taiwan's March presidential election, accusing the archrivals of "attempting to divide the motherland."
The other candidate is Peng Ming-min, who represents the opposition Democratic Progressive Party. Both Lee and Peng support Taiwan independence.
In Washington, U.S. Defense Secretary William Perry said Tuesday he's concerned about Chinese military maneuvers that seem intended to influence the presidential elections in Taiwan, but maintained that he sees "no imminent danger" of attack.
China's criticism appears intended to sway public opinion toward candidates less vehemently opposed to Beijing.
Polls show that Lee holds a commanding lead for the March 23 elections. The incumbent insists he wants to reunify with the mainland, but only after China espouses freedom and democracy and attains a similar level of wealth to Taiwan.
However, he also wants to cast off the diplomatic isolation that Beijing has imposed on Taipei, which has angered Beijing. Beijing insists Taiwan must reunify with the mainland.
China critical of candidates
"Although (Lee and Peng) differ in appearance and devices, they are absolutely identical in the essence of attempting to divide the motherland," said the article published by China's official Xinhua news agency.
"They both violate the fundamental interests of the Chinese nation, including those of the people from Taiwan. All the Chinese people . . . will never agree with them, and they are doomed to failure."
Hong Kong's Sing Tao Daily Newspaper reported on Monday that China planned to stage a military exercise involving 400,000 personnel in coastal areas opposite Taiwan. Zhang Wannian, deputy chairman of Beijing's Central Military Commission, is to command the exercise.
"The existence and development of the Republic of China (Taiwan's official title) in Taiwan is a fact. It will not change because of threats and coercion," Lee said on state television. "The dignity of the Republic of China needs to be maintained."
Taiwan readies its forces
China is enraged by what it sees as a campaign by Lee to boost the international profile of the island, which Beijing regards as a renegade province since the rival Nationalists fled there after losing the Chinese civil war in 1949.
Taiwan's military exercise, featuring four frigates and a submarine off the eastern coast city of Hualien, was aimed at preparing its forces for defense duties.
"We want to keep our forces on high alert so they are ready for any kind of situation," a senior military official told journalists in Hualien.
China repeatedly has accused Taipei, and especially Lee, of secretly pursuing a separatist path and vows to attack if Taipei drops its pledge for unity and tries for independence. Last week Beijing declined to comment on a New York Times report that it plans to attack Taiwan after the elections.
Perry concerned
"I'm concerned about the military buildup that's going on in China today," Perry said. "I do not see this as a threat yet, but I am concerned about it."
Asked if the United States would defend Taiwan in the event of an attack, Perry said it would depend on the circumstances. "At this point at least, with the present level of concern, but with no imminent danger, I do not believe we will make a statement more definite than that."
In 1979, Congress passed the Taiwan Relations Act, which says that U.S. recognition of China rests on the expectation that Taiwan's future will be determined by peaceful means.
Perry said the Pentagon is keeping a careful watch on Chinese military moves.
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February 5, 1996 Web posted at: 10:45 p.m. EST (0345 GMT)
From White House Correspondent Claire Shipman
WASHINGTON (CNN) -- New evidence from U.S. intelligence -- that China continues to export nuclear weapons technology to Pakistan -- is putting the squeeze on the administration's already embattled China policy. Members of Congress stand ready to push for sanctions, and the administration is seriously considering that move as well.
Rep. Nancy Pelosi has asked for hearings in the House Intelligence committee on the nuclear weapons proliferation issue. In public, the administration will only respond in standard "diplomatese."
"We will act consistent with U.S. law," said White House Press Secretary Mike McCurry.
But behind the scenes, administration officials confirm they are actively considering sanctions -- frustrated at the ongoing issue, both with Pakistan and Iran. But they are still hoping to resolve the matter more diplomatically.
The Chinese vice foreign minister is in Washington for previously scheduled talks -- proliferation is at the top of the agenda, as are increasing tensions with Taiwan -- reports of military maneuvers and threats.
"We've urged both sides repeatedly ... to refrain from any actions that would increase tensions in the region," said State Department spokesman Glynn Davies.
The administration has to navigate a potential minefield in the relationship between the two countries over the next six months: a United Nations human rights meeting in March, an upcoming and likely harsh review of China's performance on trade issues -- especially intellectual property rights, elections in Taiwan in March, and the review of Most Favored Nation status in June.
Critics say the administration's policy is confused, ambiguous, and its priorities are unclear.
U.S. diplomats counter that the top priority is clear -- a steady relationship with the emerging superpower -- but that the various aspects of that relationship could invite either a stick or a carrot.
If they offer any self-criticisms of policy, it's that they've realized the need to accentuate the positive instead of just providing the Chinese with a list of problems at each meeting. But U.S. officials say they are prepared for tumultuous year ahead, especially with a domestic election looming, and China policy a traditional hot-button for both parties.
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