China and the US:

1. China and the US: Tension and Disagreements, A point/counterpoint discussion A summary of handout P. 22-31 Please refer to these pages for more detailed information

2. Economic Issues

3. Economic Issues: Borrowing ISSUE: With its current budget deficit, the US government has had to keep borrowing money (from China and Japan among others) simply to keep its government operating. CHINA: Keeps lending money, because its export-based economy would suffer if Americans could not buy goods made in China. AMERICA: Is afraid that China could simply stop lending money if the US opposes China’s policies. That would create an enormous economic crisis.

4. Economic Issues: Trade Deficit ISSUE: As shown in the graph on p. 22 of the online handout, America imports a lot more from China than it exports to China. This means American wealth is flowing into China CHINA: Sees nothing wrong with this, as American consumers are choosing to buy goods made in China. AMERICA: Is worried by this, as it transfers American wealth to China, but China may start buying more American goods as more Chinese are able to afford them. America, however, has chosen to continue trading with China with few protective barriers such as tariffs (taxes on imported goods).

5. Economic Issues: Competitiveness ISSUE: China offers producers low wages, lax environmental regulations, few workers’ rights, and often prison labor. Other countries cannot compete, making Chinese labor very attractive for multinational companies, causing job losses (but cheaper consumer goods) in countries like America. In other words, American companies are making their goods in Chinese factories because it is more profitable to do so. CHINA: Except in cases where prison labor is used, Chinese people willingly accept their working conditions. It sees no problem with outcompeting other nations in the game of Capitalism. AMERICA: Is experiencing massive job losses, as Americans cannot accept such low wages and working conditions. Goods that used to be made in America with decent wages and benefits for workers are now being made in China. Companies that treat its workers well are in danger of being pushed out of business by companies using Chinese labor.

6. Economic Issues: Piracy/Intellectual Theft ISSUE: The US loses millions of dollars each year from illegal Chinese copies of music, film, software, brand-name clothing, etc. from American companies. CHINA: Claims it is powerless to stop these illegal businesses in the same way that the US has failed to stop illegal drugs in America. AMERICA: Believes China is not doing enough to stop it, and is purposefully ignoring the problem to hurt American businesses.

7. Economic Issues: “Dumping” ISSUE: International trade law prohibits governments from helping their companies sell goods below market value in other countries in an attempt to drive foreign companies out of business. (Japan did this in the 1970s and ‘80s to help destroy American steel-producing companies.) CHINA: Claims the US does the same with certain products (especially food), and has generally ignored international pressure to stop. AMERICA: Believes that China is willingly breaking international trade agreements to gain an advantage.

8. Economic Issues: Product Safety ISSUE: In recent years, products from China sold in the United States have been found on occasion to be harmful such as toxic drywall, poisonous pet food, tainted toothpaste, fake medicine, and toys with lead-based paint. CHINA: Claims it cannot control all of its factories and calls for the US to have greater oversight over products made for and imported by America. AMERICA: Calls on China to do more to keep its factories from taking dangerous shortcuts that add profit by harming consumers.

9. Human Rights Issues

10. Human Rights Issues: Tiananmen Square & Basic Freedoms ISSUE: The United States, which claims to stand for democracy and freedom, is doing business with China which proved at Tiananmen Square in 1989 that it will tolerate neither. CHINA: Believes democracy and freedom would lead to chaos, and that no country can tell it how to conduct its own affairs. AMERICA: Does not like China’s dictatorship, but willingly gave it “Most Favored Nation” trade status despite China’s actions.

11. Human Rights Issues:Tibet (and other minorities) ISSUE: Since its military took over Tibet in 1950, China, which claims the region high in the Himalayas is rightfully theirs, has sent many Chinese into the region to make Tibetans less of a majority in their own land, arrested many Tibetans for “separatist” activities, expelled the Tibetan spiritual leader the Dalai Lama, and taken steps to erase Tibet’s distinct culture. CHINA: Believes that it is the rightful owner of Tibet, and making it more “Chinese” is helping the Tibetans and other ethnic minorities (see the wall map in Room 17). AMERICA: Would like to see Tibet allowed to remain distinct, but has not called on China to leave the region.

12. Human Rights Issues: Censorship ISSUE: China’s Communist Party controls all media, and does not allow alternative views. In an effort to discourage both alternatives to the state-run media among citizens and mass communication, the government tries to block many internet sites including social networking such as Facebook. CHINA: Believes it knows what is best for its citizens, and has the right to protect them from “harmful” information. AMERICA: Believes strongly in free speech, and would like to see China become more open.

13. Human Rights Issues: Religion ISSUE: China does not believe in religious freedom, and sees organized religion (especially religions from abroad) as a potential enemy to the Communist Party’s monopoly on power. CHINA: Believes it has the right to protect itself by cracking down on potentially harmful outside influences. To this end, religious citizens are generally tolerated but discriminated against, and mass movements such as Falun Gong are banned with its leaders jailed or thrown into mental institutions. AMERICA: Strongly disagrees with these tactics, but seems to always choose economic cooperation over other principles when dealing with China.

14. Security Issues

15. Security Issues: Militarization ISSUE: Flush wish cash, China is aggressively modernizing its military. It has had nuclear missiles since the 1960s, and is quickly catching up to the United States in the number an quality of its warplanes, navy, and submarines. China’s People’s Liberation Army is the largest army in the world—at least in number of soldiers. CHINA: Believes it has every right to have a first-class military, and points out that despite needing to borrow money to stay afloat, America spends nearly twice as much as China on its military. AMERICA: Is worried about why China feels the need to upgrade its military, and worries about China’s growing influence in the world.

16. Security Issues: Arms Sales ISSUE: China does limit what it can make cheaply to clothing and toys. China has increasingly sold arms around the world, and according to the CIA, its scientists helped Pakistan develop nuclear weapons. CHINA: Is quick to point out that America ships arms all over the world. AMERICA: Worries that China’s arms sales will add to global instability and will lessen America’s ability to decide which countries are allowed to have strong militaries.

17. Security Issues: Cyberwarfare ISSUE: Attacks against American computer networks are increasing, and the US believes China has been behind some of the largest including theft of military information and codes and unauthorized access to E-mail accounts. Theoretically, cyber attacks could destroy banks, communications, and other basic infrastructure. CHINA: Denies these large-scale attacks, but definitely has the capability of doing great damage to the US. AMERICA: Also has cyberwar capabilities (and is generally believed to be responsible for a computer worm that has slowed Iran’s nuclear research), but is not believed to have used these capabilities against China.

18. Security Issues: Taiwan ISSUE: China still claims Taiwan as part of China, and threatens to one day take it back by force, if necessary. CHINA: Is not happy with all of the support (including massive amounts of military aid) America has given Taiwan. It fears that if Taiwan becomes independent, Tibet and other areas will also demand independence. AMERICA: has supported Taiwanese independence in the past, and increased military aid to it in the 2000s. The US has not ruled out defending Taiwan if China were to try to invade it.

19. Security Issues: International Relations ISSUE: China has been making substantial investments in Africa and other resource-rich nations to increase its access. CHINA: Does not believe the US has sole rights to other nations’ resources, and sees nothing wrong with using its wealth to “play the game”. AMERICA: Is concerned that it is losing influence, and is also concerned that China does not seem to care about the morality of trading with dictators and countries abusing human rights.

20. Environmental Issues

21. Environmental Issues: Conservation ISSUE: If 10% of Chinese people can afford a car, that would mean 100 million new gas-guzzling, CO2-emiting cars in the world. The world is running out of fossil fuels and clean water, and China’s industrialization is only making matters worse. CHINA: Points to America’s terrible environmental record, and feels China should not be left out of global competition for resources. AMERICA: Believes its fragile economy cannot handle higher fuel prices, and that China’s wasteful ways might doom us all.

22. Environmental Issues: Climate Change ISSUE: China’s development has come at the price of massive environmental damage and increased risk for climate change. CHINA: Believes no country should be allowed to tell it what to do, and points out that industrialization in the West also began with factories disregarding pollution control. AMERICA: Points out that 1/3 of smog on the West Coast is from China, and that China’s burning of fossil fuels (especially coal) is leading to climate change.