WITH America's trade deficit passing $ 202

billion in favour of China last year, growing complaint on rampant piracy of intellectual property and violation of human rights in China, the visit of Chinese President Hu Jintao to America from April 18 to 21 did not produce any tangible results. Similarly, China did not succeed to receive categorical assurances from Bush administration to deal with one China theory ignoring the interests of Taiwan. Although China is reported to have stated of 'successful visit' by Chinese President, it is clear from the speech of the President at Yale University in Connecticut State it did not have the desired impact on American administration.

President Hu is reported to have said that "China would make its own decisions on political freedom and human rights and not simply copy the model of western countries" while addressing students and members of faculties of the university. Chinese President further stated that differences between China and US could be overcome by cooperation and their shared desire for peace. This speaks of the mind of Chinese leadership in Beijing. As China did not share unilateral pre-emptive doctrine of Bush administration on Iraq, she also did not subscribe to the idea of imposing sanctions on Iran.

Chinese President's visit to America was marred by some small incidents also: angry protest voice at the White House lawn by dissident banned Chinese religious group Falun Gong; Chinese national flags were absent from the lampposts near the White House; the official announcer said that band would play national anthem of the Republic of China -- the official name of Taiwan while it should have been the People's Republic of China, etc. These are not all. Bush administration did not accept the Chinese request to treat the visit as State visit while the administration turned down another request of hosting state dinner. May be these were intended to show American administration's lukewarm attitude towards the rising tiger in Asia. But these were wrong signals.

China has a massive economic relationship with USA which appears to be interdependent, not competitive. US' export to China has increased by 21 percent in 2005 which is quite impressive. It makes China fastest growing export destination of US products. China's economy grows at roughly 10 percent every year and its growth is linked with the open trade and investment regimes of the major economies of the world. Exports account for 40 percept of China's GDP. While visiting Boeing plant in Seattle Chinese President endorsed the view of free trade between China and America and said" it was living example of mutually beneficial cooperation and win-win outcome that China and America have achieved from trade". In Seattle, Chinese President confirmed its pledge to buy 80 Boeing jets. Microsoft Chairman Bill Gates welcomed Chinese President in Seattle. Microsoft has also entered into agreement with China's Lenovo Group Ltd, which turns out to be the world's third largest computer company. Lenovo, which bought America's IBM personal computer businesses last year, is likely to buy $ 1.2 billion worth of Microsoft wares.

If these implemented, balance of trade even may go in favour of America. The present imbalance of trade between the two countries has caused misgiving in America. Lawmakers in America even threatened to push punitive measures unless China removes its barriers to services and goods from America. On the other hand, China blames American administration because it bars sales to China of high technology items that have military applications. Recently America had to impose embargo on the sale of military equipment by Israel to China. American administration also imposed restrictions on Chinese investments in America. Last year America imposed restrictions on Chinese textiles exports to America. If Charles Schumer- Gram bipartisan bill to slap a 27.5 percent tariff on Chinese imports, which remains on the floor of the Senate without vote because of the visit of Chinese President, is implemented, it would compel American consumers to buy Chinese products of American manufacturing companies at a higher cost.

During official talks with President Bush Chinese President offered rhetoric in support of resolving economic concerns and nonproliferation efforts

keeping both North Korea and Iran nuclear free, but refused to make a serious commitment. President Hu also made promises to address the issues like intellectual property rights and devaluation of Chinese currency: Yuan. In July last year, China raised the Yuan value by 2.1 percent vis-à-vis dollar. It has since risen by another 1 percent, but critics say it is far too little. Although both sides did not reach consensus on many issues, but they expressed desire to continue to discuss differences in a spirit of friendship and cooperation, which marks maturity in Sino-US relations.

This is one side of coin of the relations between America and China. Bush administration has growing suspicion about China's nontransparent build up of military capabilities. Bush administration sees an aggressive arms build up by China as a threat to the region, which India, Australia, Japan share. China's recent trend of piling up unlimited oil reserves is seen as a negative factor by America. The present rising trend of oil price has contributed to large scale imports of oil by China.Today she consumes 7 million barrels a day that makes China world's second largest oil consumer and third largest oil importer after America and Japan. By 2025 China's requirements of oil would be within the range of 14.2 million barrel a day, which means she would import more than 10.9 million barrel a day.

China imports huge quantity of oil from Saudi Arabia. Recent return visit by Chinese President to Saudi Arabia and King Abdullah's visit to China in January, 2006 is seen with suspicion in Washington. While Russia's power in the Middle East is on the wane, China's power and influence is growing in the region. The Chinese are viewed by states in the region as a counterbalance or alternative source of military assistance.

Therefore, policy makers in America have been apprehensive. Hence, military build up by Bush administration has begun in South East Asia, Pacific Ocean and Bulgaria to oversee the Middle East syndrome and contain China in the event of any future conflict in Asia.