China-U.S. Relations During the 108th Congress

Publication Date: January 2005

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Government

Type:

Coverage: China

Abstract:

During the George W. Bush Administration, U.S. and People's Republic of China (PRC) foreign policy calculations have undergone several changes. President Bush assumed office in January 2001 viewing China as a U.S. "strategic competitor." The White House faced an early test in April 2001 when a PRC naval aviation jet collided with a U.S. Navy reconnaissance plane over the South China Sea. But after the terrorist attacks of September 11, 2001, U.S. officials came to see Beijing as a potentially helpful ally in the fight against global terrorism, while PRC officials saw the anti-terrorism campaign as a chance to improve relations with Washington and perhaps gain policy concessions on issues important to Beijing, such as on U.S. arms sales to Taiwan. At the same time, the PRC was undergoing a substantial leadership transition to a new generation of younger officials. This, plus the U.S. anti-terrorism agenda, helped lead to a new sense of optimism and stability in the U.S.-China relationship that continued to prevail throughout the 108th Congress.

Despite this new stability, sensitivities remained over long-standing bilateral issues. U.S. officials remained supportive of Taiwan's security and its quest for international recognition, and PRC officials remained firm about reunifying Taiwan under the "one China" policy. The PRC remained suspicious about what it sees as an "encircling" U.S. presence in Asia and wary of U.S. technological advantages and global influence, while the Bush Administration periodically announced sanctions against PRC companies for violations of non-proliferation commitments. The PRC's early bungling of the SARS health crisis in 2003 posed new challenges for bilateral relations and was an early test for China's new leadership. The PRC's first manned space flight on October 15, 2003, raised new questions about the aspirations of China's space program and its implications for U.S. security.

Against this backdrop of renewed bilateral stability and long-standing sensitivities, the 108th Congress passed legislation requiring the United States annually to present a plan in the World Health Organization for Taiwan's observer status (H.R. 2092, P.L. 108-235) and considered other non-binding measures expressing strong U.S. support for (H.Con.Res. 98, on a free trade agreement; H.Con.Res. 117, expressing U.S. commitment to the Taiwan Relations Act; and H.Con.Res. 340, on support for referenda in Taiwan). When massive demonstrations were held in Hong Kong in 2003 and again in 2004 to protest an onerous antisedition measure that had Beijing's strong backing, Congress considered measures expressing support for Hong Kong freedom (S.J.Res. 33; H.Res. 667). The attention of Congress and other U.S. officials also focused noticeably on economic and trade disagreements with the PRC beginning in the second half of 2003 -- particularly on criticisms that the PRC was undervaluing its currency by maintaining an artificial "peg" to the U.S. dollar, a policy some charged was undermining the competitiveness of U.S. products and contributing to the U.S. trade deficit (H.Res. 414; H.R. 851; S. 1586, S. 1758).