integrated into the world community. In many respects, China does not appear capable of shouldering the responsibilities that extensive involvement in international affairs entails.Most important, the absence of the rule of law has been a serious impediment to China'sfulfillment of its commitments to the rest of the world. But looking back 25 years, what isstriking is how much progress China has made.The United States must work to ensure that this progress continues. We make fourrecommendations:First, the United States must establish a set of priorities with the People's Republic of China that contributes to PRC integration into the world community and serve as abenchmark for the relationship. These priorities should be in the areas of security,economic relations, and development of the rule of law. They will also help identify morespecific objectives for U.S. participation with China in international regimes, such asencouraging Chinese adherence to the standards of the International Atomic EnergyAgency and the Missile Technology Control Regime, securing Chinese membership inthe World Trade Organization on terms that protect a liberal trade regime, and promotingthe development of rule of law through institution building.Second, the United States needs to build up areas of common interest with China, even asindividual problems continue to crop up in the relationship. Just as trade and arms controlserved as cornerstones of the U.S.-Soviet relationship and buffered the rancorous debatesover human rights or Afghanistan, Washington and Beijing should pursue the mostpromising areas of cooperation, including preservation of stability on the Koreanpeninsula , environmental protection, energy conservation, improvement of China'smonetary and financial system, and institutional development.Third, China must have a seat at the table when the rules that affect its interests aredecided. Twice in this century, after World War I and World War II, China did notparticipate in establishing regional security arrangements. Others made decisions thatadversely affected China's interests, stimulating Chinese nationalism and defiance of thearrangements. This mistake should not be repeated.Fourth, the United States must consult extensively with its European and Asian partnersabout China. The United States needs the support of Europe and Asia in establishing a setof norms and institutions that will govern China's and America's interaction in worldaffairs. While our study reveals that on many issues cooperation will be difficult toachieve, rule making and norm building is a multilateral process. The United States canlead but it cannot dictate.We deliberately say little about Taiwan, clearly one of the most important issues in Sino-American relations. The Council has already sponsored a major policy statement onTaiwan by an independent group that both authors signed. That statement underscoredthe U.S. interest in the continued stability, prosperity, and freedom of the people of Taiwan and emphasized the American obligation--written into law through the TaiwanRelations Act--to assist Taiwan in maintaining its ability to deter an unprovoked attack.