In Unocal Bid, U.S. Struggles With China Policies.

Discusses the reaction of U.S. President George W. Bush to the proposed takeover of a major American oil company by a Chinese rival. Details of the offer by the China National Offshore Oil Corporation for Unocal, which had already made a deal to be acquired by American oil giant Chevron; How the issue is forcing the administration to confront its own internal rifts over U.S. relations with China; Focus on related economic and foreign-policy issues; Likelihood that the administration's numerous ties to the oil industry will become a political issue; Observation that the White House is avoiding taking a position; Divisions among Bush's advisers over how to proceed; Strategic reasons to keep the U.S.-China relationship stable; Implications of the proposed oil deal for the U.S. administration.