claim that the introduction of such a large amount of clean hydroelectric power into China’s rapidly expanding economy might mean a significant reduction in the emission of fossil fuel pollution. Experts warn that the success of the Three Gorges Dam is not guaranteed, and disagree as to the net environmental impact of the project. A critical question here is whether the environmental concerns of China can be considered a U.S. national interest. Should that be the case, do the developed nations have a right to dictate which environmental impact is more appropriate to China? Should environmental concerns be a part of U.S. commercial policy? Should the U.S. government continue to push the Ex-Im Bank? Should U.S. trade policy continue to try to change foreign government’s behavior by unilaterally imposing trade sanctions? In the following sections, we will examine the U.S. policy towards the Three Gorges Dam. First, we examine the project’s net environmental impact and describe the position of the United States. Next, we will discuss the issues raised by the case as outlined above. The concluding section will outline some recommendations for future U.S. foreign environmental policy. Environmental Benefits and Costs Chinese leaders argue that the dam will overallhave beneficial effects. First, it will generate18,000 megawatts of electricity, which would decrease by one tenth the country’s reliance on coal power, and thus reduce the amount of pollution over China’s citiesone of the most severe problems in China today. Second, it will prevent the periodic flooding of the Yangzi which has already claimed half a million lives this century. At present, 15 million lives are at stake as the river rises ever higher above the surrounding land because of sediment deposits on the river bed, while dikes can no longer be raised safely (Veltrop 1997). The dam is expected to cut incidence of serious floods from once in ...