The shift of US strategy toward China from Clinton’s strategic partner to Bush’s strategic competitor has had negative impacts on relations between the two nations. Since George Bush took office, America’s diplomacy has transformed from multilateralism to unilateralism. US image has further transformed from benign to predatory hegemony after conducting the war against Iraq without consulting the UN Security Council. The change is significant because it increases the discontents, globally in general and Asia in particular. The article explains why China is one of the most dangerous discontents based on the Power Transition Theory. The theory is chosen because it has an established empirical record when applied to past periods of war and peace, and because the elements required for long-term forecasts can be roughly approximated (Kugler, Tammen, and Swaminathan, 2001, p.2). Since the collapse of the Soviet Union, the friction between Washington and Beijing has increased because United States has become as the sole superpower on the one hand, and China has emerged as a regional power on the other. It is consistent with power transition theory: conflict occurred because of the divergent views on status quo between the global and regional hegemonies. One of power transition theory’s hypotheses is that great powers are most likely to wage the war for control of the international status quo when a power transition occurs between the dominant state and a discontent challenger. Lemke’s empirical study (2002) finds the theory is generalizable to regional interactions, and thus relative power and the status quo do not constrain behavior only among the very strongest of states. China has dissatisfied with the status quo for two reasons, as Lemke suggested. First, it had little or no say in the construction of the existing status quo and enjoyed no direct or indirect benefits from it. Second, it employs different domestic institutions for the allocation of values in its society from those used by the dominant power. Because Lemke finds strong statistical relationships between parity, dissatisfaction, and war within local hierarchies, China’s discontent becomes significant. Worse, US war on terrorism further raise the specter of unconstrained American interventionism abroad and enhanced American domination of the international system in ways that Beijing feared could have grave long-term implications for China itself (Miller, 2002). Beijing sees China’s security threatened both in terms of the precedents it sets and in terms of the expansion of the American military and political presence around China’s periphery. Given the size of China’s stake in a stable bilateral relationship the United States, Beijing was naturally not convinced by the so-called Bush Doctrine. Clear evidence showed that China’s commitment to the status quo is declining. Politically, in addition to refuse to renounce the use of force, Beijing’s irrational rejection to Taipei’s entry to WHO exemplifies China’s discontent with US supports for Taiwan. Beijing’s enthusiasm about establishment of a free trade area between China and ASEAN is a clear sign of dissatisfying with global economic status quo. Deploying more missiles along the Taiwan Strait shows Beijing discontent with Washington’s continued arms sales to Taipei. The more America insists on constructing a unipolar world, the more resistance it is likely to generate, from China and others(Harry Harding, 2003). Thus, there are at least three implications for American diplomacy. First, Washington can accommodate Beijing by sharing with China opportunities for setting international agenda. Second, do not despise China’s role on the Korean Peninsula. For Beijing, it is unacceptable if America to extend the same logic in Serbia, Afghanistan, and Iraq to justify intervening in North Korea. Third, Washington should not push Taipei too hard because Taiwan may eventually find its interest better served by switching its diplomacy from leaning only on Washington to keeping equal distance from China and the United States. Thus, for Washington, it will be a better way to stabilize the relation across the Taiwan Strait by helping establish the Confidence-Building Measures (CBM). [ABSTRACT FROM AUTHOR]