Update 11, October 2005

In celebration of the 60th anniversary of the return of Taiwan to China, the One China Committee together with The John Marshall Law School Asian Alliance and the U.S. - China Friendship Chicago Chapter, is sponsoring a Forum "U.S. - China Relations in Perspective" on Saturday 22, 2005, from 8:30 a.m. to 4:00 p.m. at The John Marshall Law School, 315 S. Plymouth Court, Chicago, Illinois 60604.

Lunch is hoted by JMLS Asian Alliance and One China Committee.

The Forum is open to the public but limited. Pre-registration is required.

Please click below for schedule and registration form:

http://www.onechinacommittee.org/05program.htm

New Members since Update 10

Dr. Molly Burke (IL), Dean of Business School, Dominican University
Mr. Alan Chien (NY), retired architect
Mr. Sheldon Dorenfest (IL), President, Dorenfest Group
Dr. David Liu (Beijing, China), President, AON
Ms. Liwen Reardon (NY), Executive Director, Morgan Stanley

Report on Chinese military power released

The Pentagon released the 2005 annual report on Chinese military power on July 19, 2005. The report is required each year in pursuance to the National Defense Authorization Act of 2000. The 45-page report contains six chapters: (1) Key Developments; (2) Understanding China's Strategy; (3) China's Military Strategy and Doctrine; (4) Resources for Force Modernization; (5) Force Modernization Goals and Trends; (6) PRC Force Modernization and Security in the Taiwan Strait. For Executive summary, please check
http://chiamonline.org/News/InEnglish/2005/Jul/05militaryreport.htm

China's Military geared to deterring Taiwan

The annual report on Chinese military power released by the Pentagon on July 19 reported that China is modernizing its military and emphasizing preparations "to fight and win short-duration, high-intensity conflicts" over Taiwan. With military spending that has grown by double digit rates since the mid-1990's, China "appears focused on preventing Taiwan independence or trying to compel Taiwan to negotiate a settlement on Beijing's terms," the report said.

This political and military pressure on Taiwan may run counter to American national security interests - and to American calls for a peaceful, negotiated resolution of the Taiwan question. But China has not yet built the military power to have full confidence it can achieve its political objectives regarding Taiwan.

U.S.-China have manageable differences and complimentary interests

In an article, "Advantage, China. In This Match, They Play Us Better Than We Play Them," published in Washington Post, July 31, 2005, James McGregor, suggests formulating and pursuing intelligent policies for dealing with China.

According to McGregor, the Chinese government today understands America much better than U.S. government understands China. China's top leaders, diplomats and bureaucrats are focused and unified in formulating and implementing their policies toward U.S. In contrast, U.S. government's viewpoint on China is unfocused, fractured and often uninformed.

The 1989 Tiananmen Square massacre is no longer a political football for American politicians to kick back and forth. Now, China is all about unity, focus and leverage.

McGregor considers that U.S. and China have manageable differences and complimentary interests. The United States could help China and itself at the same time. The author offers some suggestions:

(1) Domestic politics should stop at the U.S. border. Trench warfare on China policy between the political parties and executive branch factions only plays into China's hands.

(2) Stop preaching instant democracy. America can best help China inch toward political pluralism by trying to strengthen China's court system and rule of law and by making visas plentiful again for Chinese to attend our universities and public policy forums.

(3) Don't interfere with Chinese purchase of or merge with U.S. companies unless the American company has genuine advanced military technology. It is ridiculous to pass the House resolution by 398 to 15 for national security concerns to oppose to the recent bid by China National Offshore Oil Corporation Ltd. (CNOOC) to purchase Unocal Corp. The deal will involve a scant 0.8 percent of U.S. oil production.

(4) Develop smart, workable rules on technology exports.

(5) Vigorously push trade issues that provide a long-term win-win for China and its trading partners. U.S. focus should be intellectual property rights (IPR) protection. Chinese piracy is rapidly undermining political support for China in Congress and hampering the growth of its most innovative companies.

James McGregor is a journalist-turned-businessman and former chairman of the American Chamber of Commerce in China. His book, One Billion Customers: Lessons From the Front Lines of Doing Business in China (Simon & Schuster/ The Wall Street Journal Books) will be published in October.