The United States and China in Power Transition - Strategic Studies ...

of all of the Spratly islands. Its claim puts Vietnam in
dispute with China, Taiwan, and its Southeast Asian
neighbors, Malaysia, Brunei, and the Philippines.
China was upset with the other claimants’ rush to
take possession of the South China Sea islands. It used
force against Vietnam in 1974 to “regain” control of
the key parts of the Paracel island group, and again in
1988 to fight for the islands in the Spratly area. There
have also been armed conflicts between China and the
Philippines over their disputed features.
In the midst of the fight for territory in the South
China Sea, however, China launched its economic reform
(in 1978). Its modernization mission dictated that
China undertook measures to create an amicable internal
and external environment. The most important
of China’s external requirements was to promote a
constructive relationship with the United States (U.S.
investments, markets, and cooperation in practically
all areas were instrumental for China to get started
with its economic reform and development; Robert
Zoellick was right to claim credit for the United States
in his “responsible stakeholder” speech discussed earlier).
China’s second external priority was to mend fences
with its neighbors. A major part of China’s problems
with its neighbors was territorial disputes. Knowing
that territorial disputes were difficult to settle but refusing
to let this stand in the way of its modernization
mission, China proposed to its neighbors in the early
1980s a policy of “shelving the disputes and moving
on to promote joint development of natural resources
at the disputed areas (搁置争议, 共同开发).” 114
China’s efforts brought it an extended period of
relative peace and stability in its surrounding areas.
China was able to normalize relations with all its
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