On the afternoon of 20 November, Foreign Ministry spokesman Liu Jianchao held the regular press conference.

Good afternoon everybody. I have an announcement here: At the invitation of Premier Wen Jiaobao, Mr. Gerhard Schroeder, Chancellor of the Federal Republic of Germany will pay an official visit to China from 1 to 4 December, 2003. This will be the fifth time he is visiting China since he took office. Chinese leaders will meet with him. Besides Beijing, Chancellor Schroeder and his large economic and trade delegation will also visit Guangzhou and Chengdu. As we speak, the two sides are preparing actively for the visit. 

Now the floor is open.

Q: My question concerns the recent trade friction between China and the United States. Washington recently said that it is willing to initiate dialogue to avert a possible trade war. What's your response? Do you think this can be discussed? Second question, China cancelled the second procurement group for soybean, wheat and cotton to the United States. Can you confirm that? Is China doing this because the US imposed  quotas on China's textile products?

A: The disputes in China-US economic and trade relations should be solved through consultation on an equal footing. About the quotas on Chinese textiles, vice Foreign Minister Zhou Wenzhong and the spokesperson of MOC had both made clear our stance yesterday. We hope that the US side can treat China's representations seriously, adjust their wrong decision and return to the road of settling disputes through dialogue and cooperation, so as not to affect the development of economic and trade relations between the two countries.
About your second question, as far as I know, Chinese enterprises concerned postponed their procurement trip to the US because of technical reasons.

Q: The US Ambassador was called in to listen to the representations of China about the quotas on textiles. Can you give us some detailed information and further elaborate China's position? Second question is about Premier Wen Jiabao's visit to the US. The trade friction is increasing, and with the Taiwan question coming to the fore, what kind of message will Pemier Wen Jiabao bring to the United States?

A: Vice Foreign Minister Zhou Wenzhong called in the US ambassador in China yesterday. He indicated that Chinese Government was shocked at and dissatisfied about the decision made by CITA asking for consultations about knit fabrics, brassiere and dressing gowns imported from China in disregard of China's resolute opposition.
Zhou pointed out the Chinese Government and business circle reiterated that the application does not conform with the Procedure of Textiles and Garments Safeguard Measures on Import from China publicized by CITA, nor does it conform with the relevant commitments in the WTO report at the time of China's entry. The US Government distorted and misused the restricting measures despite China's strong opposition and without factual and legal bases. This is not only in violation of relevant legal papers on China's entry into WTO, but also in violation of WTO principles of free trade, transparency and non-discrimination. What's more, this has sent a wrong signal to American business circle and other WTO members.
Zhou said, the bilateral relations today is the reflection of the joint efforts of the two peoples. China has always maintained that the two sides should actively handle the economic and trade relations on an equal footing and in a two-way manner. We hope the U.S. Government can proceed from the overall picture of the bilateral relations, adjust their wrong decision and come back to the road of settlement through dialogue and cooperation. The Chinese government reserves the right to make further actions.
Ambassador Randt said he would forward China's position to the US Government. The US side appreciate China's positive attitude towards the bilateral economic and trade ties and is willing make joint efforts with China to properly handle the problems in economic and trade relations between the two countries.
In regard to Premier Wen Jiabao 's visit to the US, I will release the news in due course. At present the two sides are preparing for it.

Q: The US assistant secretary of state Kelly visited China on Tuesday and Wednesday. Can you brief us on the detailed information about the two sides' discussion on Korean peninsular nuclear question?

A: Kelly arrived in Beijing on 18 November for his visit to China. He held talks with Vice Foreign Minister Wang Yi on 19 November. Vice Foreign Minister Dai Bingguo also met with him.
Kelly has come to China for the preparation for the second round of six-party talks. Vice Foreign Minister Wang Yi had an in-depth exchange of views with him about this. The two sides believe, active preparation should be made to kick off the second round of six-party talks as soon as possible and make it progress. Kelly briefed the Chinese side on the  tentative ideas and suggestions of the US on the second round of six-party talks  and elaborated some of considerations of the United States on settling the nuclear question. Wang Yi stressed that the parties concerned should further display flexibility, narrow differences, promote mutual trust and create conditions for the continuity of six-party talks and substantive discussion. The two sides hold that  the consultation was good and constructive, and agreed to maintain contact in the future.

Q: China is one of the largest holder of the US treasury bonds. There are rumors in the US market that China will probably reduce or sell the treasury bonds as one of the retaliatory measures. Just now you said "China reserves the right to take further actions". I want to know if this is included.

A:  Just now I mentioned China reserves the right to take further actions about the US side's wrong decision. As to the specifics in the China-US economic and trade relations, you may refer to competent department.

Q: What is your comment on the recent development of Israel-Palestine situation?

A: We have noticed the signs of relaxation between Israel and Palestine. Leaders of the two sides have indicated for many times the will to resume dialogue at an early date and there have been active contacts on the working level. Not long ago the UN Security Council passed Resolution 1515 which endorses the Middle East  Road Map for Peace. The non-governmental personnel of the two sides also reached an agreement in Geneva aimed at realizing peace as early as possible. All these are conducive to the peace process. China welcome the development, and we hope the two sides can grab this opportunity and cooperate with the efforts of the international community to push forward the peace talks.

Q: According to media reports, China suggested to the other 5 parties that the parties concerned should institutionalize the six-party talks and make it a regular consultation. Can you confirm this information? Another piece of report says the next round of six-party talks will be held in mid December. Can that be confirmed?

A: The Korean peninsular nuclear question is a very complicated issue and is hard to solve. We have always maintained that the parties concerned should solve the question through peaceful dialogue. The existing mechanism is six-party talks. We hope the parties concerned can enhance mutual trust, expand consensus and narrow differences, so as to launch the second round of six-party talks at an early date. And we hope the six-party talks can continue.
About the specific date for the second round of six-party talks, it has yet to be determined through consultations by parties concerned.

Q: American official sources have it that Vice Foreign Minister Dai Bingguo will pay a visit to DPRK for consultations to press ahead with the second round of six-party talks. Can you confirm that?

A: I haven't heard the information as you mentioned just now. Having said that, close consultations have been maintained between China and DPRK. We have the channels to consult with each other.

Q: Please brief us on the situation of the peace keeping troops that China will send to Liberia.

A: After being approved by the State Council and the Military Committee of the CPC Central Committee, Chinese peace keeping troops to Liberia will be sent in recent days to participate in the peace keeping operation of the United Nations. The first batch will be a transportation contingent. It will be followed by a medical contingent and an engineering contingent. I believe the troops China sends to Liberia will play an active role in the peace keeping operation there.

Q: Chairman of CPPCC Jia Qinglin will pay visits to India and some other South Asian countries. Please brief us on the visit and  the importance of it.

A: China has always attached importance to the development of friendly cooperation relations with South Asian countries on the basis of the five principles of peaceful coexistence. This visit is an important visit of Chinese leader to South Asia. During the visit, Chairman Jia Qinglin will exchange views with leaders of South Asian countries on enhancing bilateral relations and mutually beneficial cooperation. We believe that the visit of Chairman Jia Qinglin will further strengthen the high-level exchange between China and South Asian countries; deepen the long term stable, future-oriented friendly cooperation between China and South Asian countries; and push the bilateral relations to a new height.

Q: Again it's about China-US trade frictions. It coincides with the US domestic politics when President Bush is seeking reelection and is facing the issue of creating more job opportunities  as  unemployment rate is high. The question is" does China think the so called trade friction is a US domestic political issue  or a pure trade issue?"

A: In essence, the trade disputes between China and the United States are within the field of economic and trade cooperation between the two countries. We hope the two sides can remove the disputes and solve the problems in the economic and trade relations through consultations on an equal footing. And we are opposed to politicalizing the problems in China-US economic and trade relations.