U.S. Relations with the People's Republic of China (2005)

U.S. Department of State

Interview With the New York Post Editorial Board

Secretary Condoleezza Rice
New York City
September 15, 2005

(11:00 a.m. EDT)

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QUESTION: What did we say on Iran? It's a very young country. They are (inaudible) traditionally our allies. That the theocracy or whatever the Ayatollahs who are robbing the country blind are very unpopular. But the complication is -- if one issue unites them because they would take pride in being a nuclear power.

SECRETARY RICE: Yes. You've got a point.

QUESTION: And all our emphasis is on nuclear -

SECRETARY RICE: Yes. That's a very good point and it's a dilemma for us.

QUESTION: Yeah.

SECRETARY RICE: Because on the one hand, you do have to stop Iran from getting a nuclear weapon. Now, that is an international - it would be an international disaster and it would especially be a disaster for the region.

QUESTION: Yea, but are the Chinese supplying them pretty generously.

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QUESTION: What about China? How would you sort of assess the general U.S.-China relationship right now?

SECRETARY RICE: Well, it's a complicated relationship. I think it is on balance better than it's ever been. But it's got some real challenges. On the positive side, you got, I think, really good cooperation on several regional issues, including the six-party talks, and on counterterrorism very good cooperation.

When you look at the economic issues, there are also good and that adds to it on the good side. The growing Chinese economy is a good thing for the international economy because it means markets and it means product that can be brought to the United States.

But the down side of that is that we've been clear with the Chinese is that it's a huge economy that is not yet reformed and not yet in conformance with the market economies work. And therefore, it could have a negative impact on the international economy if they don't undertake reforms like currency reforms, like intellectual property rights protection. They have a law that has been sitting there. They've not yet put into force that would make it - that would bar sales of foreign software to Chinese Government entities. While given the proportion of that economy that is government, that would be a significant protectionist measure against foreign software. And so that's something that we've been saying would be unacceptable.

So there are a number of good things about the relationship; but there are a number of problems and the Chinese sometimes don't see how their policies are affecting others. So that's part of our job is to say, here's what - how is this affecting the international economy.

I'll make one other point, I happen to think, along with Don Rumsfeld and a number of others, that the Chinese military buildup looks outsized for their regional interests. And so that is something to be concerned about. Probably the best approach from the point of the United States is to make certain that we maintain our own technological edge in East Asia and that we make - or in the Pacific - and that we maintain our strong alliances in that region and help to bring peace and stability. And I'm quite confident that we can do that.

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