China's international position is quite strong: it has leverage over Russia, which is increasingly dependent on China for economic and military aid; and it is in a strong bargaining position with the European Union, which relies on Chinese trade and investment. These circumstances might not seem conducive to improvement in China-U.S. relations, especially since many longstanding issues, such as on Taiwan and trade, remain unresolved. But progress in some areas, notably military-to-military talks, have (as Chinese officials see it) “stabilized” relations. This article argues that if the U.S. develops a China policy that emphasizes finding common ground rather than, as at present, devising ways to contain and deter China, some elements of China's foreign policy might change and serious tensions over Taiwan and the South China Sea islands could be calmed. Furthermore, it addresses incentives–in particular, U.S. acceptance of the Chinese principle of partnership, not rivalry– to wean