AP Photo

Despite the recent squall in U.S.-Chinese relations, the fact remains that both countries have powerful reasons to cooperate with one another. These have grown over the last two decades, something that both countries seem to recognize. China's reaction to the Obama administration's decision to sell arms to Taiwan has been furious, but has mostly involved symbolic gestures. Compare this with 1992, when the Bush Sr. administration sent Taipei weapons, and soon afterward Beijing reportedly sold missiles to Pakistan and signed a nuclear-cooperation agreement with Iran.

This time China's strongest threat"”to "retaliate" against U.S. companies involved in arms sales"”is likely to be targeted at those firms, like Raytheon, that have been long-time suppliers to Taipei and as...