Bush: 'A complex relationship with China'

President Bush and President Hu Jintao of China last fall, during the last APEC summit. White House photo by Eric Draper

by Mark Silva

As President Bush prepares for a summit of Pacific Rim leaders next week in Australia, the foreign press is most inquisitive about his thoughts on China these days.

“Is China an issue for the world?’’ Bush said in a White House interview this week with foreign reporters. “Absolutely. But I don't view it as a negative issue, I view it as an opportunity to work with a -- one of the really significantly growing economies in the world.

“Here's the way I view it: First, I view that a growing middle class in China is good for U.S. exporters; it provides opportunity,’’ the president said, with the White House releasing the transcript of the interview today. “By the way, it's not only good for U.S. exports, it's good for Australian exporters, and it's good for Japanese exporters, and it's good for Singaporean, Malaysian -- anybody who is making a product somebody wants, it's just a good opportunity.’’

The president will leave Monday for a Sydney summit of the Asia-Pacific Economic Cooperation, an assembly of 21 nations that touch on the Pacific – from Australia and Asia to North and South America.

“As a part of our engagement with China, we have worked with (President) Hu Jintao to convince him to help convert his economy from one of savers to one of consumers, which means -- and, by the way, that takes a lot of effort and work to get in a position where you can even make those kind of constructive suggestions, which means the development of a pension system, or health care, so that people don't feel like they have to hoard their money to save for a rainy day, but in fact there's some kind of safety net that is predictable, which then would convert a Chinese person who is beginning to realize better income into a consumer,’’ the president told reporters. “And then all of a sudden you've got consumers, which provide opportunity.

“Now, Hu Jintao actually gave these remarks at the White House along these lines, at the East Room there. It took a lot of trust and work to get -- to enable him to make that statement, but that's the kind of statement which people around the region ought to say, thankfully -- I'm thankful that he was able to say that, because it takes what some view as a problem and converts it into a great opportunity for all of us to grow our respective economies. ‘’

Does this mean he views China as “the big grower of the economy’’ in the Pacific region?

“No, I see the United States as the big driver for trade,’’’ Bush said. “We're a significant economy. At APEC people ought to be wondering whether or not George Bush is going to keep taxes low, to make sure our economy continues to grow, because we're a significant trading partner. I view China as an opportunity.

“I think the United States is going to drive a lot of the trade. That's why we conducted -- now, having said that, I think China will provide opportunity for Australian producers, but we also provide the same opportunity. I don't view it as a zero-sum game. Let me put it to you that way. I view it as an -- I view all of us contribute, so long as the world doesn't slip into protectionism. And part of the reason one goes to APEC is to promote trade and opportunity. ‘’

Bush was asked if he considers China friend or enemy.

“Well, I think, first of all, we have a complex relationship with China,’’ Bush said. “It is one that -- where it is growing, it's changing. The United States strongly supports markets. China is a market that's developing. On the other hand, we also support open societies, transparency, where people are allowed to express themselves in a free society. I believe in freedom of religion. I believe in basic freedoms.

“So our relationship with China is, on the one hand we welcome trading opportunities. We want there to be free trade and fair trade. We want the currency to float. These are complex issues. And what makes the relationship even more complex is at the same time we believe in human rights and human dignity. And we worked with the Chinese leadership to promote human rights and human dignity.

“So it's not -- it's hard to define the relationship in kind of a simple, one-sentence structure. And so "complex" is probably the best way to say -- but positive. As I told you, I view China as a positive opportunity. And from a personal perspective, have got warm and cordial relationships with President Hu Jintao. I like him; I like to talk to him. He's a smart man. We can share issues together. I can say, what are your biggest problems, and he can say to me, what are your problems. In other words, we've got a personal relationship.’’