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Chinese Economy

China’ economy is growing thanks to its military power displays and its growing concerted efforts on proving its worth around the world. On March 15, 2003, Hu Jintao became President of the People's Republic of China. Shortly before, he became General Secretary of the Communist Party of China on November 15, 2002. During this time, the Chinese government as demonstrated that it is willing to make decisive policies that could disrupt United States goals and plans. China poses critical challenges to U.S. economic and strategic interests.

U.S. hopes for Taiwan's independence from China is threatened. A formal declaration of independence could lead to a military confrontation between The People's Republic of China (PRC) and Taiwan, a United States ally, because China remains committed to reunification. China is willing to back up its threats with military deployment. Recent examples of military purchase are signs of this intent. In addition to equipment, China is forming a strategic alliance with Russia, which has often opposed U.S. interests. Some of the motivation for this potentially aggressive posture is economic. China is a growing economic power, with a significant balance of trade advantage over the United States and a thirst for oil. China doesn't want to be threatened with tariffs by the U.S., but the growing Chinese economy demands new oil supplies, and that puts the U.S. squarely in competition with our interests. Further, access to greater oil supplies could increase China's military potency.

According to The Washington Post, Robert B. Zoellick, urged China to become more responsible. According to the April 23, 2006, New York Times, the arrival of President Hu Jintao from China in Saudi Arabia, offered a sign of shifting winds as China has grown to be a key market for oil, and now there are Arab states that have turned to China as an alternative to the United States and Europe. They now see China as a source of low prices. While China has not been overtly hostile to the U.S., they are an emergent power to be reckoned with. The growth of their industry, which demands the same oil we've found so dear, could certainly be the spark for more aggressive moments with this increasingly well-armed power. Further, the fact that China is willing to deal with states that we consider rogue states, both buying oil from them and providing weapons to them, supports the notion that China doesn't necessarily have our best interests in mind.

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