See also post 51491.

http://www.nytimes.com/2005/03/13/weekinreview/13kahn.html?pagewanted=all

March 13, 2005
The Two Faces of Rising China
By JOSEPH KAHN

BEIJING

CHINA'S leaders announced last week at the annual National People's
Congress that they will give themselves legal authority to attack
Taiwan if they decide that the disputed territory has ventured too far
toward independence. It was their boldest ultimatum to date, backed by
China's rapidly modernizing military.

But the banner headline in the next day's China Daily, the official
English-language newspaper was: "Peace Paramount in Anti-Secession Bill."

Rising China has two faces. Its leaders want - arguably need - to be
viewed as managing a new kind of emerging superpower, one that will
not threaten neighbors or the world. Only a gentle giant can attract
$60 billion in foreign investment and rack up $160 billion annual
trade surpluses with the United States, the thinking goes.

Yet the Communist Party has also concluded it would lose power if it
cedes Taiwan. The bill introduced last Tuesday, and set for passage
Monday, is just the latest attempt to prove that the party will pay
any price, including a war that might well involve the United States,
to preserve China's territorial integrity.

"Our elites know China will have difficulty rising if the world
worries about a new military threat," says Jin Canrong, a foreign
policy expert at People's University in Beijing. "But China also
cannot rise if Taiwan breaks away. And Taiwan will break away unless
the threat of force is very real."

China has no immediate ambitions to shake the world order or challenge
the United States, many analysts say. Washington wants to keep it that
way. But Taiwan is bringing out China's aggressive instincts, with
unpredictable results.

"I don't know which side is winning - the side that wants to fight for
national interests, or the side that accepts international norms,"
says Philip Yang, a cross-strait expert at National Taiwan University
in Taipei.

China has thrived because it devotes itself to economic development
while letting the United States police the region and the world.
Beijing sometimes decries American hegemony, but its leaders envision
Pax Americana extending well into the 21st century, at least until
China becomes a middle class society and, if present trends continue,
the world's largest economy.

China insists it has no fights to pick. Its evolving foreign policy
maxims - principles of peaceful co-existence, peaceful orientation,
peaceful rise, peaceful development - have the same emphasis.

Beijing spends far more resources on domestic projects, like bridges,
steel mills and office towers, than it does on the military. Its
economic strategy depends more heavily on integration with the outside
world than Germany or Japan did in the years before they asserted
themselves in the first half of the 20th century.

"They want to have a peaceful rise because they have to," says Robert
G. Sutter, a former National Security Council official who is now an
Asia specialist at Georgetown University. "They have done a
cost-benefit analysis and they have found that it is much too costly
to be antagonistic" to the United States, he said.

China is smoothing relations with most big countries. It recently
settled border disputes with India and Russia, backed the American war
on terror, soft-pedaled territorial claims in the South China Sea,
lured Southeast Asian neighbors into a trade pact, even stepped up
foreign aid.

Taiwan is the big exception. Cross-strait relations have deteriorated
since the mid-1990's. That is largely because Taiwan's independence
movement has grown in popularity. Chen Shui-bian, the
independence-leaning president, won two elections. But tensions have
also risen because Beijing has shown little flexibility or creativity
in accommodating Taiwan's democratically expressed wariness of the
mainland.

Its strategy often seems limited to reflecting the certainty of an
attack if Taiwan tries creating a separate legal identity. The
anti-secession bill may have been introduced precisely because it
appears to tie the leadership's hands - and make war seem inevitable -
if Taiwan changes its formal name or redrafts sensitive clauses in its
Constitution.

In a sense this is just more saber-rattling. China has long breathed
fire about Taiwanese independence, so much so that Mr. Chen and many
other politicians in Taiwan have discounted Chinese threats.

Their assumption is that China will not really attack because it
ultimately cares more about domestic development, playing host to the
2008 Olympics, and avoiding a conflict with the United States than it
does about securing its sovereignty over Taiwan.

But Beijing's leaders have also concluded that the Communist Party
needs to draw the line on Taiwan's "splittists." The party has staked
its reputation on restoring the Chinese nation to its rightful place
in the world.

After the return of Hong Kong to the Chinese fold in 1997, Taiwan
remains the most visible reminder of the dismemberment China suffered
at the hands of foreign powers at the end of the Qing dynasty (though
many Taiwanese claim the island did not belong to the mainland then
any more than it does today).

China treats Taiwan as sovereign territory. So it insists its
belligerence should not be seen as infecting its approach to other
nations. Even the draft bill introduced this week devotes three
sections to peaceful overtures to Taiwan. Only the final, fourth
section notes the conditions under which China would consider other
means, which the bill refers to vaguely as "nonpeaceful."

Yet there are signs that China cannot easily compartmentalize Taiwan.
Military spending has surged in recent years, with the official budget
rising to $30 billion in 2005. Western analysts say that actual
spending may be two or three times higher.

The target is Taiwan. But China's new Russian-made Su-30MKK fighters
and Kilo-class attack submarines could inflict plenty of damage on the
United States Pacific fleet, and the build-up has alarmed Japan.

"Taiwan is a problem for America and Japan as much as it is for China
because it is the excuse China has used to build up its military,"
said Mr. Jin of People's University. "If there were not the Taiwan
issue, China would find it harder to justify this kind of spending."

A European diplomat in Beijing said last week that the anti-secession
bill, especially if it prompts a tit-for-tat response from Taiwan,
could raise the risk of conflict and cause the European Union to delay
the lifting of its arms embargo on China, one of Beijing's top priorities.

Relations with Japan have grown testy. Historical animosity from
Japan's occupation of China has played a role. But Japan recently
discovered a Chinese submarine mapping the ocean floor in Japanese
territorial waters, possibly preparing for a sea battle over Taiwan or
contested energy resources. And Japan joined the United States in
February in a public pledge to defend Taiwan, infuriating Beijing.

In its quest for energy, China has also curried favor with Iran and
Sudan, oil-rich nations that have rocky relations with the West. It
has threatened to use its veto at the United Nations to prevent
international sanctions to punish Iran for its nuclear program or
Sudan for its alleged genocide.

"I see them as becoming less and less conciliatory on issues they
consider to be vital interests," says Bonnie S. Glaser, a China expert
at the Center for Strategic and International Studies in Washington.
She cited Japan and energy security as well as Taiwan as examples of
China's more nationalist approach.

Increasingly there are two Chinas on the world stage. One has 19th
century notions of sovereignty and historical destiny. The other
embraces 21st century notions of global integration. The
anti-secession bill looks like a victory for the atavists.






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