ing business in China is overstated. Many firms who are competing to win Three Gorges contracts privately concede that they do not expect to make any money from the project (Tomlinson 1997). In addition, claims by corporations that they would lose vast amounts of business rest on the assumption that they would win most, if not all, of the available contracts. Loss of U.S. jobs is likewise uncertain, given that American companies such as Caterpillar assemble their machines mostly in Indonesia using parts made in Japan. It is also true that construction projects typically involve much local labor. Therefore, a significant amount of the economic loss to the United States would be restricted to foregone sales and service of machinery that is not truly American-made anyway. It is worth reiterating that the lack of access to export credits acts as an impediment to, but not a legal ban on, U.S. corporate involvement in the project. Some American firms chose to compete for contracts through their foreign subsidiaries. Those who have not, such as Caterpillar and Rotec, have sold up to $100 million in equipment and services without Ex-Im Bank support (Iritani 1997). Furthermore, despite the lack of export credits, it has been estimated that of the $2 to $3 billion worth of equipment that will be imported to construct the dam, 70 percent will come from the United States (China to Import 1997). Thus, when the difference between the amount of business that ultimately goes to U.S. companies and the amount of business that would have gone to U.S. companies directly is calculated, the figure may not be so significant. Nevertheless, American firms view involvement inthe Three Gorges Dam as a gateway to moreinfrastructure development contracts in China, aview that the Chinese government also seems toshare. Since this project is so important to ChineseleadersPremier Li Peng, a former hydroelectricengineer, has pushed for it personallysomecompanies fea...