Chinese diplomats in Washington are on the offensive publicly and privately to counter recent reports to Congress warning of threats posed by China's economic growth and military modernisation. Embassy press attache Xie Feng on Monday warned against 'interference' in Chinese affairs, while other envoys are working contacts to spread the word that China represents no threat to the US. They probably do not need to bother. A range of sources on Capitol Hill believe the first annual report of the US-China Security Review Commission is likely to have little impact on US lawmakers grappling with a host of other issues from the war on terrorism to corporate crime. The commission's report was preceded by a Pentagon document that warned of the threat posed to Taiwan and US forces in the Pacific by the mainland's military modernisation. However, one week since the release of the 260-page commission report and it was already 'on the shelf' and was likely to stay there, said one veteran Republican lobbyist who closely follows the Sino-US relationship. The lobbyist said he felt it would only be 'dusted off' if there was a sudden crisis in the relationship. Both Democrat and Republican Senate sources said they were not expecting any attempts to push through any new laws from the report's recommendations. 'China's just not on the radar screen right now and no one is talking about this report,' a Senate Democrat staff member said. To many, the report has a 'predictable' hardline gloss that has lessened its impact. Drafted by a panel of 12 commissioners, the appearance of a bipartisan approach has been weakened because many have records of being conservative in their views on engagement with China. 'Its tone is far too hardline and suspicious for most moderates,' the lobbyist said. The report demands a tougher economic approach to China, despite its entry to the World Trade Organisation - a move supported by a majority of congressmen in 2000. It seeks greater official scrutiny - and possible sanctions - on Chinese firms raising funds on US capital markets, claiming China's military expansion has been fuelled through off-shore fundraising in recent years. It also demands new regulations to watch US businesses in China and their trade while warning that the mainland's economic growth threatens the wider region and traditional Washington leadership. The capital markets issue is one that is being particularly closely watched, given earlier moves by Republican senator Fred Thompson and his Democratic counterpart Robert Byrd to create similar legislation. Both senators have publicly backed the report but neither has yet moved to attach earlier drafts to the 13 spending bills now moving through Congress. A lack of action is good news for the administration of President George W. Bush, which appears keen to play down the report. 'We want a more cautious engagement, maybe, but we still want engagement,' one senior Bush administration official said. 'We don't want shocks coming out of Congress as we try to balance the China relationship on a number of fronts and build a broad range of ties . . .'
