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The tenor of U.S.-China relations for much of the first year of the administration of President George W. Bush was set by a crisis that need not have occurred. How the situation was handled and eventually resolved is instructive. It tells us about a beleaguered communist leadership in the buildup to major generational transition (scheduled for late 2002 and early 2003) and the mettle of a democratically elected U.S. government tested early in its tenure by a series of foreign policy crises and a carefully coordinated set of devastating terrorist strikes against the continental United States. The way the April 2001 crisis on Hainan Island was resolved must be chalked up as a success for the United States. the key was Washington's ability to convince Beijing that holding the air crew was hurting, and not advancing, Chinese interests.