Abstract After the U.S. government adjusted its China policy and advocated dialogue and engagement in 1996, relations between
the two countries began to improve. But anti-China forces in the U.S. attacked China strongly on the issues of Hong Kong, human rights, trade, arms sale, Taiwan, and the alleged political donations, threatening the
relationship with reversion. President Jiang Zemin's visit to the U.S. resumed the momentum of
improvement and led to a level of cooperation between the two countries never seen for years. This paper argues that despite all the talk about bilateral conflicts over the above issues, the real factors affecting the relationship should include: (1) the enduring impact of the Tiananmen Incident; (2) the negative coverage of China by American media; (3) American psychological insecurity caused by the rise of China; and (4) U.S. domestic politics. Analysis of these factors suggests that while the current trend of improvement is likely to continue, it is not going to be smooth sailing.