I

January 1, 2004 will be the 25thanniversary of the establishment of diplomatic relations between China and theUnited States. In the quarter of a century, China-US relations have traversed an unusually tortuous course.

Seven years after President Nixon's historical visit toChinaand the issuance of the Shanghai Communiqué,Chinaand the US established diplomatic relations when President Carter accepted China's position on the Taiwan question. This event, together with the successful visit to the US by Mr. Deng Xiaoping, opened a new chapter in the annals of Sino-American relations.

In the early years of the Reagan Presidency,Chinaand the US had some sharp clashes over the Taiwan question. The two sides issued the famous August 17th Communiqué in 1982 after strenuous negotiations and reached agreement for a gradual solution to the issue of US arm sales to Taiwan.

The Shanghai Communiqué, the Communiqué on the Establishment of Diplomatic Relations and the August 17th Communiqué together form the political cornerstone of China-US relations. During the first decade after diplomatic recognition, the two countries by and large had a stable relationship with bilateral exchanges and cooperation in the various fields increasing albeit with occasional difficulties onTaiwanand other issues.

In the late 1980s and early 1990s, the world went through some of the most profound changes since World War II characterized by the upheaval in Eastern Europe, the collapse of the Soviet Union and the end of the Cold War. China-US relations took a nosedive when theUSgovernment took the lead in sanctioningChina, announced the sale of 150F-16jet fighters of Taiwan, linked China's MFN trading status with human right issues and allowedTaiwan's Lee Teng-hui to visit theUS.

Thanks toChina's sustained and rapid economic growth, the country enjoyed an increasing international stature. More and more Americans realized that a better and closer relationship withChinawas in the interests of both countries. In 1997, President Jiang Zemin paid a state visit to theUS, the first by a Chinese head of state in 12 years. The two sides issued a joint statement, agreeing to handle their relations on the basis of the principles of the three communiqués and pledging their joint efforts to build towards a constructive strategic partnership. In 1998, President Clinton visitedChinaand the two countries decided to broaden the areas of cooperation for stronger bilateral ties.

Just as a Chinese saying goes, the tree may prefer calm but the wind refuses to subside. The 1999 bombing of the Chinese embassy inBelgradeand the 2001 midair collision cast a dark shadow on China-US relations once again.

The "9.11" incident of 2001 sent shock waves around the world and changed theUnited States. It also changed the way many Americans viewedChina. In October that year, President Jiang and President Bush held a historical summit on the sidelines of the Shanghai APEC meeting, in which they agreed to work together to build a constructive and cooperative relationship between China and the United States. Later, President Bush paid a visit toChina, and President Jiang visited theUSand met with President Bush at his ranch in Crawford. Theses exchanges of visits gave a strong boost to bilateral coordination and cooperation in counterterrorism, commerce, trade and other endeavors on important world and regional issues.

Since the beginning of 2003, President Hu Jintao and President Bush have held two successful meetings where they reached a great deal of consensus on closer bilateral coordination and cooperation in broad and important areas. These meetings went a long way towards solidifying the constructive and cooperative relationship between the two countries. The successful visit to theUSby Premier Wen Jiabao accomplished its anticipated objective of strengthening dialogue, broadening consensus, removing disruptions and promoting cooperation, and added fresh vitality to the growing relationship.

Though not short of stormy moments, the overall orientation of the 25-year-old relationship is one of going forward.

On the eve of diplomatic recognition, the trade figure of the two countries was less than US$ 2.5 billion. Now, as each other's key economic partner,Chinaand theUShave presided over a 40-fold expansion of two-way trade boasting well over US$ 100 billion. The number of US-invested projects inChinahas topped 40 thousand with a total paid-in value of US$ 43 billion.

Before diplomatic recognition, contacts between the two countries were few and far between. Today, personnel exchanges total more than a million person/times a year. Over 180 thousand overseas students ofChina's mainland have worked or studied in theUS, with 60 thousand still studying right now.Chinaalso has three thousand American students in its schools. What is more, 35 pairs of provinces/states and 114 pairs of cities from the two countries have forged friendly ties.

On the eve of diplomatic recognition, China-US cooperation was just off for a start. Today, the number of inter-governmental cooperation agreements has surpassed 30. The two countries have maintained fruitful consultation and cooperation on wide ranging areas of counterterrorism, theKoreanPeninsulanuclear issue,Iraq, the UN affairs and others, which has in turn reinforced the strategic foundation of China-US relations.

II

Twenty-five years, to history, was just the blink of an eye. But inspirations it has brought to people are indeed profound.

First, despite their obvious differences,Chinaand theUSshare extensive converging interests and have a broad basis for cooperation.

Some in theUSonce suggested that the disappearance their common enemy had deprived China-US relationship of its strategic basis and the two countries would have nothing to look forward to for a workable relationship. Others advocated "Chinathreat", arguing to replace the formerSoviet UnionwithChinaasAmerica's new enemy. These fallacies have been proved wrong by history. Facts since the end of the Cold War show that the converging interests ofChinaand theUShave increased rather than decreased and the areas of their cooperation have expanded rather than dwindled.

Second, it is important to think long-term and bear in mind the larger picture.

BothChinaand theUSwield important influence in world affairs and shoulder major responsibility for peace and development of mankind. A sound China-US relationship will not only benefit the two peoples but also contribute to peace, stability and development around the world. Just as pointed out by Chinese leaders on many occasions, China-US relations have never been purely bilateral and their implications have gone far beyond the bilateral scope. Given such, when called upon to address bilateral ties, both sides must not limit themselves to the specific issue itself but bear in mind the larger picture, taking into account not only their bilateral ties but also possible implication or ramification to regional or global developments.

The Chinese government has always attached importance to China-US relations. It has all along stood for a growing strategic and long-term relationship between the two countries that is consistent with the fundamental interests of the Chinese and American peoples. In recent years, some people of insight in theUSdescribed China-US relationship as the world's most important bilateral relationship of the 21stcentury, and calledUSattention to put this relationship on a strategic plane. We believe that so long as the two sides view and conduct their relations with a strategic and long-term perspective and get a firm handle on the overall interests of the relationship, there should be no insurmountable obstacles in the years ahead.

Third, it is important to take a constructive attitude by stressing such principles as win-win and mutual benefit.

The changing times have constantly added new dimensions to China-US relations. In today's world when globalization is accelerating, interdependency deepening and global issues becoming more pronounced, relations among the world's major countries are no longer a zero-sum game. Harmony serves both whereas confrontation benefits neither. This has become a more distinct feature of our world.

Chinais a responsible member of the international community. It will not, and cannot, follow the beaten track of traditional powers. The peaceful development ofChinacan only contribute to rather than challenge US interests. By the same token, the continuation ofUSprosperity is also inChina's interests. We will welcome a constructive role of theUSin international affairs.

We hope theUSwill have a fair and objective view ofChina, and handle bilateral relations with a constructive approach featuring win-win and mutual benefit. In this way, China-US cooperation will grow from strength to strength and deliver greater benefits to both sides.

Fourth, it is important to adhere to the principles of the three joint communiqués and properly handle whatever differences there might be.

Our world is a diverse and colorful place. It is all very natural for countries, regions, ethnic groups or communities to have differences of one kind or another.China's ancient philosopher Confucius advocated an idea of "harmony without uniformity". Lack of uniformity is the objective reality, and harmony is the goal, a goal that serves all parties.Chinaand theUShave differing social systems, historical backgrounds, cultures and values, but none of these should stand in the way of increased friendship and cooperation between the two countries.

The Chinese people stand for a diverse world, greater democracy in international relations and pluralism in development models. All civilizations, social systems and development models in the world should respect one another, draw strength from one another in mutual emulation and strive for common development through seeking common ground while putting aside differences.

The three communiqués jointly issued byChinaand theUSprovide the guiding principles for the handling of differences between the two countries. We believe that so long as both sides abide by the idea of "harmony without uniformity" and strictly observe the principles of the three communiqués, they will be able to iron out their differences, expand their cooperation and ensure a healthy and steady development of their relations.

Fifth, an appropriate handling of theTaiwanquestion holds the key to ensuring a stable and growing China-US relationship.

TheTaiwanquestion has always been the biggest disruptive factor to a smooth development of China-US relations since diplomatic recognition. With respect to this question, theUSgovernment has made some clear-cut commitments in the three communiqués. That is, the US follows a one-China policy; it recognizes that there is but one China and Taiwan is part of China, and the government of the People's Republic of China is the sole legal government of China; the people of the US will maintain cultural, commercial, and other unofficial relations with the people of Taiwan; the US does not seek to carry out a long-term policy of arm sales to Taiwan, and it intends to reduce its sale of arms to Taiwan, leading, over a period of time, to final resolution.

For years, theUSgovernment of both Republican and Democratic administrations all made clear their commitment to the one-China policy and the principles of the three joint communiqués. However, theUSgovernment has, time and again, violated the above-mentioned commitment by continuing to sell advanced weapons toTaiwan, upgrading US-Taiwan relations and sending wrong signals to the separatist forces on the island. This is the principal reason why China-US relations have run into snags and even suffered setbacks from time to time.

In recent months, theTaiwanauthorities have gone out their way to whip up a referendum-frenzy, challenging the one-China principle and peace and stability in the Taiwan Straits. The Chinese government has made it clear that on the Taiwan question, "we will continue to adhere to the basic policy of 'peaceful reunification and one country, two systems', doing our utmost with maximum sincerity to achieve a peaceful reunification, but we will not tolerate 'Taiwan independence', nor will we allow anyone to separate Taiwan from the rest of China in whatever fashion."

We have noted that theUSgovernment and President Bush himself have repeatedly reaffirmed their commitment to the one-China policy and the three joint communiqués, and their opposition to "Taiwanindependence" and words and deeds of the leader of theTaiwanauthorities to unilaterally changeTaiwan's status quo. We hope that theUSside will continue to oppose the separatist activities of theTaiwanauthorities under the banner of referendum and making a new constitution, so as to maintain peace and stability in theTaiwanStraitsand the common interests ofChinaand theUSwith concrete actions.

III

Looking ahead, we have full confidence in the future development of China-US relations.

Thanks to reform and opening up in the past two decades and more,China's modernization drive has achieved tremendous success. However, we still have a very long way to go before all our people can lead a life of modest prosperity. The coming two decades will be a strategic window of opportunity for the country's modernization program and we will stay focused on economic development.

China's development needs a peaceful international environment, particularly in its periphery. We will continue to play a constructive role in global and regional affairs and sincerely look forward to amicable coexistence and friendly cooperation with all other countries, theUnited Statesincluded. We will continue to push for good-neighborliness, friendship and partnership and dedicate ourselves to peace, stability and prosperity in the region. ThusChina's development will also mean stronger prospect of peace in the Asia-Pacific region and the world at large.Chinaand theUSshould, and can, work together for peace, stability and prosperity in the region.

Given the highly complementary nature of the two economies,China's reform, opening up and rising economic size have opened broad horizon for sustained China-US trade and economic cooperation. By deepening our commercial partnership, which has already delivered tangible benefits to the two peoples, we can do still more and also make greater contribution to global economic stability and prosperity.

Terrorism, cross-boundary crime, proliferation of advanced weapons, and spread of deadly diseases pose a common threat to mankind.Chinaand theUShave extensive shared stake and common responsibility for meeting these challenges, maintaining world peace and security and addressing other major issues bearing on human survival and development.Chinais ready to keep up its coordination and cooperation in these areas with theUSand the rest of the international community.

During his visit to theUSnearly 25 years ago, Deng Xiaoping said, "The interests of our two peoples and those of world peace require that we view our relations from the overall international situation and a long-term strategic perspective." Thirteen years ago when China-US relations were at their lowest ebb, Mr. Deng said, "In the final analysis, China-US relations have got to get better." We are optimistic about the tomorrow of China-US relations. We have every reason to believe that so long as the two countries view and handle the relationship with a strategic perspective, adhere to the guiding principles of the three joint communiqués and firmly grasp the common interests of the two countries, we will see even greater accomplishments in China-US relations.