The United States, China and the Three Gorges Dam: Toward a Sounder Foreign Environmental Policy

Abstract

The Three Gorges Dam project on China's Yangzi River is the world's largest hydroelectric undertaking. While Chinese leaders say the dam will improve river navigation, prevent periodic flooding, and provide the needed electricity for China's growing economy, many doubt that the dam will be able to meet the proponents' claims and instead point to evidence of environmental catastrophe if it is built. Under pressure from NGOs, the Clinton Administration has opposed the provision of competitive export financing for the dam. This decision sparked criticism from U.S. executives who argue that by not participating the United States is losing jobs and the opportu­nity to mitigate the negative aspects of the dam. This paper argues that the U.S.· position was justified. As part of a consistent and credible environmental policy to promote sustainable development, the United States should integrate environmental guidelines into its commercial diplomacy. U.S. policy towards China should provide support for prudent environmental policies as well as environmental technology transfers, both to foster environmentalism and advance U.S. commercial interests.