The Obama administration is promising stronger diplomatic engagement with China but also warns that the United States is ready to handle any Chinese military threat.

In her first comments to reporters at the State Department, new Secretary of State Hillary Rodham Clinton urged a broader U.S. approach toward a country crucial to U.S. interests in Asia and around the world. Her comments Tuesday appeared to be a criticism of the Bush administration's China policy.

"We need a comprehensive dialogue with China," Clinton said. "The strategic dialogue that was begun in the Bush administration turned into an economic dialogue," she said — a reference to former Treasury Secretary Henry Paulson's Strategic Economic Dialogue, high-level discussions that have been held twice a year starting in late 2006. "That's a very important aspect of our relationship with China, but it's not the only aspect of our relationship."

Defense Secretary Robert Gates, meanwhile, assured lawmakers Tuesday that U.S. forces "have the capability in place to be able to deal with any foreseeable Chinese threat for some time to come."

The global financial crisis has dominated recent discussions between the two countries, and trade ties often cause tension. Treasury Secretary Timothy Geithner said last week that President Barack Obama believes China is manipulating its currency. American manufacturers say Beijing keeps its yuan currency cheaper than it should be so that its goods become cheaper for U.S. consumers and American products more expensive in China.

The United States has pushed China to live up to what U.S. officials consider Beijing's duties as an emerging global superpower and a veto-holding member of the U.N. Security Council. Still, Washington and Beijing find themselves increasingly intertwined in a host of crucial economic, military and diplomatic efforts.

Clinton said the Obama administration is working to design "a more comprehensive approach that will be more in keeping with the important role that China is playing and will be playing."

"The economy will always be a centerpiece of our relationship, but we want it to be part of a broader agenda," she said.

Another prime worry in U.S.-China ties is a possible military conflict; Taiwan is a potential flash point. China and Taiwan split in 1949 during the civil war that brought the communists to power, but Beijing considers the self-governed island a part of its territory and is determined to get it back, by force if necessary. Washington is required by law to provide the island with weapons to defend itself and has hinted it would come to Taiwan's aid if mainland forces attacked.

Beijing has built up a huge arsenal of missiles opposite Taiwan and maintains double-digit annual percentage increases in the budget for the 2.3 million-member People's Liberation Army.

After the Bush administration announced last year a $6.5 billion arms sale for Taiwan that included Patriot III missiles and Apache helicopters, Beijing suspended some senior-level visits and other planned exchanges.

Gates said that despite China's anger over the sale, opportunities for cooperation remained: he and his Chinese counterpart have opened a military hot line and the countries have begun a strategic dialogue, similar to U.S.-Soviet talks in the mid-20th century, meant to "avoid mistakes and miscalculations" through better communication.

"A new administration here, a fresh start, perhaps creates opportunities to reopen the aperture, if you will, on military-to-military contacts." On the arms sale, Gates said, "they knew that it was going to happen, and it's just a matter of getting past that and on to the longer-term interests of both states."

The Defense Department, he said, is making good progress toward developing a "number of programs" meant to counter Chinese technological advances that could "put our carriers at risk."

He did not elaborate on those programs but said U.S. forces are well positioned in the region. Among those he mentioned are the nuclear-powered USS George Washington — a floating air base with 67 aircraft and an armory carrying about 4 million pounds (1.8 million kilograms) of bombs, which has a new home port in Japan.

The Associated Press, January 28, 2009