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...result: after Hughes and Loral lost three satellites when the Long March rockets boosting them into space blew up, the Cox report says, they "acted without the legally required license" as they worked out the trouble with the Chinese. In the process, says the report, they gave away information on guidance systems that could boost the accuracy of Chinese ballistic missiles. Both Hughes and Loral deny they violated export-control law or transferred sensitive information. Congress reacted last winter by ordering the licensing process back to State...

Author: /time Magazine | Title: The Next Cold War? | 6/7/1999 | See Source »

...dean of Yale's School of Management. "So it's healthy that we have a national debate over what we transfer and what we hold back." Engagement with China rests on scores of such decisions, and virtually no one, not even in the white heat of the Cox report, is seriously calling for Washington to disengage...

Author: /time Magazine | Title: The Next Cold War? | 6/7/1999 | See Source »

...danger is that Clinton's implacable critics, armed with the Cox report, will vent their outrage on the entire Sino-American relationship. They are right to slam the door on Chinese spying, but a sizable number sound ready to turn China into the New Enemy. Washington hardheads talk of holding up the annual renewal of China's normal trade relations (the new bureaucratic label for most-favored- nation trading status) or blocking its entry into the World Trade Organization...

Author: /time Magazine | Title: The Next Cold War? | 6/7/1999 | See Source »

...endorsement, NATO's assault on a sovereign Yugoslavia, the bombing of the Chinese embassy in Belgrade, which no Chinese citizen believes was accidental--all these add up to frightening confirmation that the U.S. is bent on "containing" China from achieving its rightful place in the world. The Cox report not only buttresses the public tilt toward tension and mutual distrust but also strengthens Beijing's own hard-liners as they call on China's leaders to get tough...

Author: /time Magazine | Title: The Next Cold War? | 6/7/1999 | See Source »

...economically, and a military buildup isn't its top priority, "unless we help change it," says a Clinton aide. Whether China chooses to exploit the secrets it has already stolen to embark on a superpower arms race may depend on how Washington manages this dangerous rift. The Cox report offers a stark warning. If we get hostile, they will get hostile. If both China and the U.S. give in to extremists in their capitals and let their relationship unravel, the worst-case scenario the report presents just might come true...

Author: /time Magazine | Title: The Next Cold War? | 6/7/1999 | See Source »

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