Welcome to the next Cold War
By Joanne Gray, Washington
A high-level delegation of officials from the United States will arrive in Beijing in a couple of weeks ready to hand over information about how it mistakenly bombed the Chinese embassy in Belgrade during the controversial war with Yugoslavia. afr.com.au
It may seem ridiculous that the US would want to reveal even more US defence data in the midst of a furore over allegations that over 20 years, China stole vital information about nuclear weapons and missiles.
And yet this is the contorted position in which the US finds itself in its fast deteriorating relationship with the world's most populous country. The relationship is in crisis, and the two countries seem destined to see each other in increasingly adversarial terms.
"The Clinton administration and the Chinese administration are on a downhill ride," said the former US Ambassador to China, James Lilley. "You've got two forces tearing at it. One of course is the Chinese anti-Americanism stirred up after the bombing of their embassy in Belgrade. Second is our whole fixation on this espionage problem."
A year ago on a visit to China, President Bill Clinton lauded the strengthened links between the two countries. Japan worried that it was being replaced as the US's most important ally in the region when Clinton, wanting help in containing North Korea, described the relationship with China as a "strategic partnership".
No-one is talking partnership now. The report of the bipartisan Congressional committee chaired by Republican Christopher Cox, which alleged the Chinese espionage of US nuclear secrets, the humanitarian war in Yugoslavia, and the abortive talks on World Trade Organisation accession, have blown that nebulous idea out of the water. During the week, a bipartisan group of members of Congress demanded a "pause" in US relations with China. Eighty members of Congress are calling for the resignation of the National Security Adviser, Sandy Berger, over the failure to deal more aggressively with the security lapses in the weapons laboratories. And the Republican presidential front-runner, George W. Bush, described China as a "nuclear competitor".
Clinton has refused to punish China by isolating it, and has restated the engagement policy. His trade representative, Charlene Barshefsky, has declared that talks about China's accession to the WTO will go ahead.
But there is very little good to show for engagement. Outside the White House, just about everyone believes the time has come to at least reassess ties ~ diplomatic, military and economic.
"The continued assertion by the administration that the United States and China are strategic partners is naive and misguided," said a Cox Committee member, Congressman Ben Gilman. "Instead, it's obvious that China views our nation as both a rival and a possible threat to ... its place in the world.
"No threat to American national security ~ China or otherwise ~ should be disregarded or downplayed. And that includes the now clearly heightened threat that China poses to our friends and allies in that region, including Taiwan."
Every nation spies, and the US has the biggest intelligence budget ~ over $US30 billion ($46 billion) a year ~ of them all. Embarrassment over the lax security that seems to have allowed major nuclear secrets to be stolen from the US is one thing. Of far greater concern is that as a result of US incompetence, China may have jumped several generations in technology and is more likely to emerge as a military threat in the Asia-Pacific and towards the US.
China's real aspirations may not be benign, if the reports of espionage are true, and that the worst-case scenario, a nuclear breakout, cannot be dismissed. Americans are also shocked at the reminder that China has a dozen long-range missiles trained on US cities.
"We have been acting until now based on the expectation that China would evolve in the direction of democracy and human rights and that time was on our side," said a moderate Republican on the Cox Committee, Doug Bereuter. "But it's now clear that the weapons technology gap has been reduced so much ... [that] we can no longer act based on that expectation."
The US Congress has responded to the Cox report with lightning speed. The US Senate moved to curb high-technology exports, and wants to revert to a Cold War era system that require licences for sales of dual use technologies, like telecommunications, computer chips and networking products, aircraft and satellites. Congress is expected to give the FBI greater power over security checks at national weapons labs like Los Alamos, the target of the alleged espionage.
Beyond that the US will likely stay "engaged" with China, but at the same time it will probably lunge towards a more sceptical policy of containment, analysts say.
China clearly has territorial ambitions in Taiwan and the South China Sea. Beyond that, says David Shambaugh, professor of politics and international relations at George Washington University, China wants to be able to conduct naval patrols stretching from the Persian Gulf in the west, to Australia in the south and to Hawaii in the east. "The problem is that they are not capable of it and won't be for over 20 years."
The US began building up its alliances with China's neighbours in the region when, in 1996, China conducted live fire military exercises off Taiwan, prompting the swift dispatch of two US aircraft carrier battle groups.
The alliances will be upgraded, says the head of Asian Policy Studies at the Brookings Institution, Bates Gill, as a result of the Cox report. "Especially Japan is going to increasingly see China as a bigger problem than before. It's going to strengthen the sort of traditional balance of power relationships in the region ~ the US and Japan, the US and Taiwan ~ versus China." India too, may see China as a larger threat.
But might the US fuel China's fears if it explicitly tries to get closer to China's neighbours, in particular if it goes ahead with a theatre missile defence system for the region? By treating China as a Cold War enemy, the US may encourage it to behave like one, says the director of defence studies at the libertarian Cato Institute, Ivan Eland.
He says deeper alliances with China's neighbours are sure to enrage China. "We are kind of encircling them ~ with alliances with Japan, Taiwan and Thailand ... we don't need to be as provocative."
And with a defence budget of around $US35 billion, China will never challenge the US budget of 10 times that amount, says Eland, who is in the minority in being only mildly concerned about the implications of the alleged Chinese espionage. China has a bad reputation for being able to reproduce technology, he says. Data about the W88 nuclear warhead was obtained in 1988 and tested between 1992 and 1996 but still hasn't shown up in the field.
Others are less sanguine. If the technology which was allegedly stolen makes its way into Chinese designs and deployments, "it is indeed extremely worrying, and very dangerous for countries in the region and the US," said Professor Shambaugh, because China will have leapt 20 years in development. Still, he acknowledges that while the Chinese have achieved some miniaturisation of warheads, they otherwise have a "pathetic" reputation for integrating technology and reverse engineering.
The idea that China could turn into a Cold War security threat akin to the former Soviet Union is overblown, says Stephen Yates, a senior analyst at the Heritage Foundation, a conservative think-tank. "There are some very sophisticated people that I think are dumbing down our population by perpetrating that notion."
While acknowledging that the Chinese military is outdated, and that there are limits to how much China can expand its annual defence budget, he and others say the US needs a national missile defence system. The Cox report has dealt this largely Republican group a much stronger hand.
There are still some who believe talks on China's accession to the WTO could be the bright spot that rescues the Sino-US relationship from its crisis. There are already signs that the Republicans who favour China's WTO entry will not let this episode completely derail accession, despite the aborted talks and their more hawkish stance towards China on military and diplomatic issues. The Republican senate leader, Trent Lott, has already cautioned against over-reacting in the area of trade.
Even Christopher Cox, the Republican from California who chaired the committee that produced the report, is in favour of WTO accession.
The perceived threat posed by China was propelled beyond Washington and into the nation's consciousness this week. The way the US public reacts to the Cox report will dictate how the relationship develops from here, says the Brookings Institution's Bates Gill. Americans are being told on television talk shows that the nation could be on the brink of a new Cold War with China.
"Their views and the way the Congress has to react to those perceptions is going to contribute to the inability of the two sides to have any significant improvement in the relationship probably throughout the rest of the Clinton presidency," he said.
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