Sino-American relations

Sino-American relations refers to interstate relations between the United States and China. Most analysts have characterized present Sino-American relations as complex and multi-faceted, with the U.S. and the People's Republic of China (PRC) being neither allies nor enemies. At the same time, it is generally acknowledged that the nature of Sino-American relations will be a major factor in determining the state of the world in the 21st century.

Important issues in Sino-American relations

Taiwan

The Republic of China remains a focus of difficulties in the relations between the United States and the People's Republic of China. The United States exports large amounts of weaponry to Taiwan and there is a great deal of sympathy for Taiwan partly because it, unlike the PRC, is a pluralistic democracy and because of residual sympathy over the ROC's anti-communism during the Cold War. Taiwan becoming part of the PRC is also expected to change the balance of power in that region, which has alarmed Japan as well.

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At the same time, neither the PRC nor the United States appears interested in provoking a conflict over Taiwan. The United States sees war in East Asia as disruptive to its interests, while the PRC believes that the long term trends are in favor of Chinese reunification and that there is no point in provoking a war in which it stands a high chance of losing. However, with improvements in China's military capability since the 1990s, the threat of an invasion of Taiwan remains real and the ability of the US to defend Taiwan has been put in doubt. Furthermore, increased economic engagement with China is making it more difficult for the US to react as many US business conservatives consider Taiwan expendable.

Related Topics:
East Asia - Chinese reunification

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On Taiwan, there is a general public consensus in favor of the status quo. However, some supporters of Taiwan independence, such as Lee Teng-hui have expressed the idea that Taiwan must act quickly to declare independence because the long term trends are against it. In several cases in which the administration of Chen Shui-bian appeared to be moving away from the status-quo and toward independence, the United States has asked for and received assurances that the ROC remains committed to the Four Noes and One Without.

Related Topics:
Taiwan independence - Lee Teng-hui - Chen Shui-bian - Four Noes and One Without

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Officially the United States policy is governed by the Taiwan Relations Act, by the Six Assurances and by the Three Communiques and has stated a commitment to a one China policy. The strength of that commitment and the relationship between these policies, which are contradictory, changes from time to time.

Related Topics:
Taiwan Relations Act - Six Assurances - Three Communiques - One China policy

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U.S. diplomatic representation in the ROC is done through the American Institute in Taiwan and ROC diplomatic representation in the U.S. is done through the Taiwan Economic and Cultural Offices. These institutions act as embassies and consulates all but in name.

Related Topics:
American Institute in Taiwan - Taiwan Economic and Cultural Offices

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See also: Political status of Taiwan

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U.S.-China economic relations

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U.S. direct investment in mainland China covers a wide range of manufacturing sectors, several large hotel projects, restaurant chains, and petrochemicals. U.S. companies have entered agreements establishing more than 20,000 equity joint ventures, contractual joint ventures, and wholly foreign-owned enterprises in China. More than 100 U.S.-based multinationals have projects in China, some with multiple investments. Cumulative U.S. investment in China is valued at $48 billion. The U.S. trade deficit with mainland China exceeded $162 billion in 2004 and was the United States' largest bilateral trade deficit. Total two-way trade between mainland China and the U.S. has grown from $33 billion in 1992 to over $230 billion in 2004. Some of the factors that influence the U.S. trade deficit with mainland China include:

Related Topics:
Petrochemical - Joint venture

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The strength of the U.S. economy: A shift of low-end assembly industries to China from the newly industrialized economies (NIEs) in Asia. Mainland China has increasingly become the last link in a long chain of value-added production. Because U.S. trade data attributes the full value of a product to the final assembler, Chinese value added gets overcounted.

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U.S. demand for labor intensive goods exceeds domestic output. The PRC's restrictive trade practices, which include a wide array of barriers to foreign goods and services, often aimed at protecting state-owned enterprises. These practices include high tariffs, lack of transparency, requiring firms to obtain special permission to import goods, unevenness of application of laws and regulations, and leveraging technology from foreign firms in return for market access. China's accession to WTO should help address these barriers.

Related Topics:
State-owned enterprise - Tariff - WTO

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In economics and trade, there are two main elements to the U.S. approach:

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At the September 2002 Joint Economic Committee meeting in Washington, the United States and People's Republic of China discussed strengthening cooperation in fighting terrorist finance and money laundering, prospects for foreign direct investment in mainland China's financial services, and the regional reliance on U.S. macroeconomic developments. Mainland China's continued strong growth has made it an important regional engine of growth, and the PRC reiterated its commitment to a strategy of market reforms and global economic openness.

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Human rights

The United States maintains a policy that China needs to improve its human rights in a wide array of fields from the treatment of dissidents to the strict enforcement of its one child policy. China, however, argues that its human rights concerns are a strictly internal matter and should have no effect on trade or other bilateral relations. There are still many outstanding issues including, political prisoners, the repression of the Falun Gong sect, the mistreatment of Chinese Christians, and forced abortions. More recently, the democratic archivement of Hong Kong also came to concern. Although human rights has improved in China to a certain extent, China has been able to successfully control the Internet and other mediums.

Related Topics:
Political prisoner - Falun Gong - Chinese Christians - Abortions - Hong Kong

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The War on Terror had been a step backwards for human rights, when China convicted a dissident of terrorism in a closed trial. This was roundly criticized by the US and other nations, due to China's refusal to release any of the evidence, leading to speculation that China was using terrorism as an excuse to jail dissidents. In 2003, a proposed anti-terrorism law in Hong Kong was met with concern and demonstrations because it was widely viewed as an attempt to clamp down on dissidents who were based in Hong Kong.

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