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The action should have raised concerns among U.S. citizens, too -- for not only its foreign policy implications, of which there are certainly many, but the possible economic implications this creates for the faltering U.S. and global economy. The decision-making process of the Taiwan arms sale was one more example of how the personal agenda of a lame- duck president and the efforts of interest groups could put the United States' national and economic interests at risk.
China has some $2 trillion in foreign exchange reserves -- the largest reserve in the world -- and continues to earn billions a day through its exports. Over time, China has purchased nearly $1 trillion in U.S. debt, such as the roughly $300 billion of Fannie Mae and Freddie Mac debt it owns, making it a major financier to the American credit binge. All these indicate China is well-placed to get much-needed cash into U.S. markets in this crucial time. This explains why the Chinese president and premier have received phone calls from President Bush, Gordon Brown, Kevin Rudd and other Western leaders in recent days asking for cooperation and help.
For many Americans, the arms sale and the economic crisis are two separate issues. However, one doesn't need an advanced degree in international relations to know China has always been extremely sensitive on any U.S.-Taiwan collaboration. While U.S. relations are often bottom-line-oriented, the Chinese and East Asian cultures deeply value showing respect and keeping a good relationship. Sometimes a "step forward" is not worth the price of disrespect....
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