Transcripts

A Missile Threatens To Torpedo U.S./ China Relations

SUSIE GHARIB: A surprise today for military analysts, news that China successfully tested an anti-satellite missile to destroy one of its old weather satellites. The test not only raises concerns about a Chinese military presence in space, but also threatens to set back recent progress made in U.S.-Chinese relations. Washington bureau chief Darren Gersh reports.

DARREN GERSH, NIGHTLY BUSINESS REPORT CORRESPONDENT: It is not just that the Chinese tested a missile that could be used against U.S. military satellites. It is also how it was done -- without any notice or explanation from Beijing. Arms control expert Jeffrey Lewis calls the Chinese decision to launch short-sighted.

JEFFREY LEWIS, EXECUTIVE DIRECTOR, PROJECT ON MANAGING THE ATOM: This is a test that's reckless in the sense that it is a debris-creating event that threatens the peaceful use of outer space. And it's stupid in the sense that it is self-defeating and ultimately compromises the long-term interests of the Chinese nation.

GERSH: At the very least, analysts say the test set back by years, a promising move towards U.S.-Chinese cooperation on commercial and civilian space exploration. Washington State Democrat Rick Larsen co-founded a bipartisan group of 40 House members working for better understanding in U.S.-China relations. He says the test will increase concern on Capitol Hill over China's true intentions.

REP. RICK LARSEN, (D) WASHINGTON: China has destroyed this aging satellite with an anti-satellite weapon. I hope that that test doesn't result in destroying the strategic economic dialogue that we're starting to have with China.

GERSH: Treasury Secretary Henry Paulson launched that dialogue just last month, heading a high-level delegation to Beijing. A Treasury spokesperson tells NIGHTLY BUSINESS REPORT, while we're concerned about the recent action by China, we have a wide-ranging relationship with them that is active on many fronts. But critics are already using the anti-satellite test as a reason to take a tougher economic and military line with China. Dean Cheng is an expert on China's space program.

DEAN CHENG, PROJECT ASIA, CNA CORP.: Folks who are concerned about China as a military threat, economic threat -- outsourcing-- all of those folks are going to be using this test as an example of how economic relations do not lead to a more liberal, democratic, safer China.

GERSH: Cheng says China presents a unique challenge to the United States. It is both a major trading partner and the only country other than the United States that has shot down a satellite. Darren Gersh, NIGHTLY BUSINESS REPORT, Washington.