In an article, "The root of conflict between the U.S and China" (The Hankyoreh, March 12, 2010), Selig S. Harrison, Director of the Asia Program at the Center for International Policy, considers that if relations between the United States and China continue to deteriorate, the consequences for all of Northeast Asia, including Korea, could be significant. He says that "the bitter controversies between Washington and Beijing over arms sales to Taiwan and over President Obama's meeting with the Dalai Lama are worrisome, especially the still-explosive arms sales issue."
The Administration says no. It argues that China needs access to the U.S. market just as much as the U.S. needs China to buy its Treasuries; that the Beijing decision to sell $34 billion in U.S. securities in December came before the U.S. announcement of the arms package, and that Beijing unloaded the Treasury securities mainly to protect itself from any future weakening of the dollar.
He gave two explanations why China cares so much about the arms sales issue. " First, since Taiwan was taken away from China by Japan, getting it back is a compelling nationalist priority, a key step in China's emergence as a great power in control of all of its rightful territory. Second, U.S. arms sales delay the gradual process of unification between China and Taiwan that is moving with increasing rapidity as a result of economic factors."