ABSTRACT
Despite the ups and downs of United States-China relations at turn of the twenty-first century, some observers saw commerce as the key element bringing the two countries closer, suggesting that economic interdependence will override other issues. It may have escaped most people's notice, but April was a busy month for China-United States business ties. United Airlines and United Parcel Service both opened new direct flights to China. The collision between an American spy plane and a Chinese fighter off the south China coast on April 1 set off a war of words that recalled the darkest days of the Cold War. Bilateral ties were also strained over Taiwan. As the US economy slips close to recession and Western markets flounder, China is offering one of few big markets and investment opportunities for US companies. The chapter considers how business ties between the two nations have grown since 1995, last time bilateral military tensions peaked following Chinese missile tests off Taiwan.
