Word: china
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...recently the White House has emphasized a tougher stance toward China. After Google indicated that it might end some of its China operations due to hacking attacks and official censorship, Clinton sided with the U.S. media giant and called on China to investigate the attacks. In early February, Obama said the U.S. would press China on its currency, which economists say Beijing keeps undervalued to boost Chinese exports. (See pictures of Tibet...
...This month, the President also approved the sale of $6 billion worth of arms to Taiwan, which China considers part of its territory. That provoked further anger from Beijing. Three senior Chinese military officers were quoted in an official newspaper suggesting that the government should sell some U.S. Treasury bonds in retaliation...
...Obama came into office emphasizing the importance of diplomacy, and last year Secretary of State Hillary Clinton said the U.S. wouldn't allow human-rights issues to derail cooperation with China on other fronts, like stabilizing the global economy. Last fall Obama delayed meeting with the Dalai Lama when he was in Washington to avoid angering China ahead of his first visit to the country. That move was criticized by some as too deferential, as was Obama's approach to human-rights issues during his three-day trip, which Chinese activists called disappointingly limited...
...Administration wanted to avoid giving the impression it considers the Dalai Lama a head of state. "The President stated his strong support for the preservation of Tibet's unique religious, cultural and linguistic identity and the protection of human rights for Tibetans in the People's Republic of China," White House press secretary Robert Gibbs said...
...China's holdings of U.S. government bonds did drop by 4% to $755 billion, the U.S. Treasury Department reported this week, but those numbers are from December, before the recent downturn in ties. China's vast holdings of U.S. debt give it only limited leverage, because any partial sell-off would harm the value of its remaining U.S. assets. Dumping Treasuries would also undermine the American economy, further dampening the market for Chinese exports. So even as the U.S. and China find a growing number of issues over which to argue, their economic interdependence helps keep the disagreements from spiraling...