I. Review of Sino-US Political Relations in 2001

In 2001, Sino-US relations have gradually shown improvement and development after considerable twists and turns.

On January 4, US President elect George W. Bush wrote to President Jiang Zemin to extend thanks for President Jiang's congratulations. On February 16, President Bush wrote to President Jiang expressing his wish to strengthen dialogues and cooperation with China, to meet with President Jiang and visit China during the APEC Informal Leadership Meeting in Shanghai. On February 18, President Jiang wrote back to President Bush inviting him to attend the APEC meeting and visit China. On March 13, Mr. Yang Jiechi, the newly appointed Chinese Ambassador to US presented credentials to President Bush. From March 18 to 24, Vice Premier Qian Qichen visited US at the invitation of US government. During his visit, Vice Premier Qian met with President Bush, Vice President Chimney, Secretary of State Powell, Secretary of Defense Rumsfeld, National Security Advisor to the President Rice and other US Government officials.

On the morning of April 1, an US EP-3 military surveillance plane approached China's airspace 104-km southeast of China's island province of Hainan, bumped into and damaged one of the Chinese F-8 fighters which were following and monitoring it and caused the death of the pilot Wang Wei. Without permission from the Chinese side, the US surveillance plane intruded into China's airspace and landed at Lingshui Military Airport in Hainan. On the same evening, Assistant Foreign Minister Zhou Wenzhong summoned the US Ambassador Pruecher and lodged a solemn representations and protest to the US government. On April 4, Minister Tang Jiaxuan summoned the US Ambassador Pruecher and lodged a solemn representation again to the US government on the US military surveillance plane ramming into and destroying a Chinese military plane. On April 11, Minister Tang Jiaxuan received a letter from the US Government saying "very sorry" for the US military surveillance plane ramming into and destroying a Chinese military plane, handed by the representative plenipotentiary of the US Government and US Ambassador Pruecher. On April 12, the Chinese Government decided to allow the 24 crewmembers of the US plane to leave China. From April 18 to19, the Chinese delegation headed by Lu Shumin, director of the Department of North American and Oceanian Affairs of Foreign Ministry, and the US delegation headed by Verga, Deputy Assistant Minister of US Department of Defense, held negotiations on the airplane collision incident in Beijing. On April 18, China defeated an anti-China motion sponsored by the US for the 10th time at the 57th session of the United Nations Human Rights Commission. From April 23 to 25, Assistant Foreign Minister Mr. Zhou Wenzhong and US Ambassador Pruecher held informal negotiations on the settlement of the US EP-3 event. On April 25, Vice Foreign Minister Li Zhaoxing summoned US Ambassador Pruecher and lodged a solemn representation and protest to the US government on its decision to sell large quantity of sophisticated weapon equipment to Taiwan, including 4 Kidd-class destroyers, 8 submarines and 12 P-3C sub-hunting patrol aircraft which were worth billions of US dollars.

On May 1, US International Religious Freedom Committee released its annual report of 2001. Part of the report concerning the Chinese issues rashly criticized and wantonly attacked the Chinese religious status. On May 15, Mr. Kelly, US Assistant Secretary of State responsible for east-Asia and Pacific affairs visited China, informed the Chinese side of the US plan to develop its Missile Defense System and exchanged ideas of such issues as Sino-US relations, etc. From May 8 to 27, the US Government allowed the Dalai Lama to go to the US to conduct in separatist activities against China. The Chinese side made solemn representations to the US side.

On June 2, China and US held negotiations on the technical arrangements of the disassembling and transportation of the US EP-3 military surveillance plane and reached an agreement. Form June 19-22, Assistant Minister of Foreign Affairs Mr. Zhou Wenzhong made a working visit to the US. On June 28, Minister Tang Jiaxuan communicated with US Secretary of State Powell by telephone at the request of the US side, and exchanged ideas on such issues as Sino-US relations and Iraq, etc.

On the evening of July 4, the disassembling and transportation working of the US EP-3 military surveillance plane fully was finished.

On July 5, Chinese President Jiang Zemin talked with US President George W. Bush on phone at the request of the latter. President Jiang said that the Chinese Government and people attach importance to China-US relations and wish to develop a constructive relationship of cooperation with the US. President Bush said US-China relations are vital and that there should be good dialogues between the two countries. China is a great and important nation, and that he respects China, and respects China's history and future. The US and China can find areas where they can work together.

On July 16, US President George W. Bush wrote to President Jiang a letter about some issues on US-China relations. Bush said expressed his expectation for his coming visit to Shanghai and Beijing and his wishes to know more about the Chinese position on the future through this visit.

On July 25, Foreign Minister Tang Jiaxuan held talks with US Secretary of State Colin Powell on the sidelines of the annual meeting of the Eighth ASEAN Regional Forum (ARF) in Hanoi, Vietnam.

From July 28 to 29, at Foreign Minister Tang Jiaxuan's invitation, US Secretary of State Colin Powell visited Beijing. During his visit, President Jiang Zemin, Premier Zhu Rongji and Vice Premier Qiang Qichen met with Secretary Powell respectively and Foreign Minister Tang held talks with him. Powell said the United States doesn't regard china as an enemy. There are extensive mutual interests between the US and China. The improvement and development of the bilateral ties could bring benefits for both. The United States hopes to develop a constructive relationship with China. The two sides also reached agreements on a series of communications and exchanges.

On July 28, President Jiang Zemin received a letter of credence from the new US ambassador Clark Randt, Jr.

On August 8, President Jiang Zemin met in Beidaihe with Joseph Biden, Jr., Chairman of the Foreign Relations Committee of the US Senate and other US Senators in the delegation. On August 9, Premier Zhu Rongji and Foreign Minister Tang Jiaxuan met with the delegation headed by Biden separately.

On August 31, Assistant Foreign Minister Zhou Wenzhong called in US Ambassador Randt and protested the US sanction against China's Corporation on non-proliferation matter.

On September 11, the regions of New York and the Washington, D.C. in the US suffered a severe terror attack, which caused huge human casualties and wound. At midnight, President Jiang Zemin conveyed a message to US President George W. Bush expressing deep sympathy to Bush, the US government and people. Jiang said the Chinese government opposes all violent activities by terrorism. Foreign Minister Tang Jiaxuan also sent a telegram to US Secretary of State Colin Powell to express his deep sympathy. On the evening of September 12, President Jiang Zemin had a telephone conversation with US President Bush at the request of the latter. President Bush thanked President Jiang for his recent telegram of sympathy and condolences and said he was looking forward to working closer with President Jiang and other leaders of the international community in the common fight against international terrorism. President Jiang said that China is ready to strengthen dialogues and cooperation with the United States and the international community in combating all sorts of terrorist violence.

On September 13, Vice Premier Qiang Qichen held a telephone conversation with US Secretary of State Colin Powell at the request of the latter. Secretary Powell extended his attribute again to the Chinese side for the support and sympathy.

From September 20 to 21, Foreign Minister Tang Jiaxuan visited the US at the invitation of US Secretary Colin Powell.

On September 25, the China-US Experts' Consultation on Anti-terror was held in Washington, D.C.

On October 8, President Jiang Zemin had a phone conversation with President Bush on request. Bush thanked the Chinese government for its strong statement against global terrorist networks. Bush remarked that he looked forward to meeting with Jiang during the up-coming APEC informal leaders meetings in Shanghai. President Jiang reiterated that the Chinese government has always been opposed to all types of terrorism. Jiang stressed that the Chinese side is willing to work together with the US side to reinforce exchanges and cooperation, and make efforts to protect the world's peace, stability and development. On the same day, The Chinese Foreign Minister spokesman commenting on US and British joint military strike on targets in Afghanistan saying that the Chinese government opposes terrorism of any form, and supports relevant resolutions passed by the UN General Assembly and the Security Council. China supports fight against terrorism. The relevant military strikes on terrorism should be targeted at specific objectives, so as to avoid injuring innocent civilians. China hopes that peace be resumed as soon as possible.

On October 9 and 10, James A. Kelly, US Assistant Secretary for East Asian and Pacific Affairs visited China. On October 9, the China-US human rights dialogues were held in Washington.

On October 15, President Bush sent a letter to President Jiang, giving thanks for Jiang's proposal to arrange discussions on the anti-terrorism issues during the APEC informal leaders meetings, and expressed the wish to meet with Jiang in Shanghai.

On October 19, President Jiang Zemin held talks with President Bush in Shanghai. The two leaders exchanged views on Sino-US relations, anti-terrorism and other major issues and reached consensus. The two sides agreed on working together to develop a constructive relationship of cooperation between the two nations. Bush said that the United States attaches great importance to the relationship with China. China is a great nation and is not an enemy of the United States. He regards China as a friend of the United States. The United States has been working for developing constructive relations of cooperation with China. While differences may exist between the US and China, the two countries will deal with the differences in the spirit of mutual respect and frankness. Jiang said that China attaches great importance to the Sino-US relations and has always held that China and the US should develop a constructive relationship of cooperation. To this end, a high-level strategic dialogue mechanism may be established between the two sides, through which the two leaders, directly or via envoys, exchange views on major issues of common concern, and communicate in a timely fashion.

On November 12, President Jiang had phone conversation with President Bush. The two sides exchanged views on the implementation of the spirit of the two President's meeting in Shanghai and other issues concerning Sino-US relations.

On November 12, an American Airlines Flight A300 passenger airplane crashed in New York. President Jiang sent a letter to President Bush to express condolences. Foreign Minister Tang Jiaxuan also sent a letter of condolences to Secretary of State Powell.

On November 29 and 30, Deputy Foreign Minister Wang Guangya visited the United States, and met with the US Under Secretary of State for Arms Control and International Security John R. Bolton for consultations on Arms Control and non-proliferation.

Through December 4 to 6, the US Coordinator for Counter-terrorism Affairs Francis Taylor led a delegation to China for consultations on the anti-terrorism issues. On December 7, State Secretary Powell sent a letter to Foreign Minister Tang Jiaxuan on the Middle East issue. On December 13, President Bush gave a phone call to President Jiang who was visiting Myanmar, briefing that the United States would withdrawal from the "Anti-Ballistic Missile Treaty". President Jiang elaborated on China's position on the question. On the same day, Foreign Minister Tang Jiaxuan held phone conversation with State Secretary Powell on request on the same issue. On December 16 and 17, Avis Bohlen, the United States Assistant Secretary for Arms Control visited China, briefing to the Chinese side on the withdrawal of the US from the Anti-Ballistic Missile Treaty. On December 28, State Secretary Powell sent a letter to Foreign Minister Tang Jiaxuan on the Middle East issue. On December 31, Minister Tang Jiaxuan replied Secretary Powell on this matter, briefing with Secretary Powell on Tang's visit to four countries in the Mideast.

In 2002, the development of Sino-US relations suffered some disturbances, but the relationship generally maintained the momentum of improvement and development.

From February 21 to 22, President Bush paid a working visit to China at the invitation of President Jiang Zemin. The leaders of the two states had in-depth discussions on bilateral relations and the current international situation at their second summit meeting. The two sides shared the view that China and the United States should reinforce dialogue and cooperation, appropriately handle differences and jointly promote the further development of Sino-US constructive cooperative relations. They reached consensus on many important issues and achieved positive results in many areas. The two sides agreed to reinforce high-level strategic dialogues and actively carry out exchanges and cooperation in such fields as economic and trade, energy, science and technology, environmental protection, AIDS prevention and treatment, law enforcement, to conduct strategic dialogues on regional economic and financial issues, and to convene meetings of the 3 joint commissions of trade, and science and technology respectively in this year. With pleasure, President Jiang accepted President Bush's invitation to visit the United States before attending the APEC meeting in Mexico in October. At the invitation of Vice President Cheney, Vice President Hu Jintao would also visit the United States in April of 2002. During their meeting, President Jiang stressed the importance of properly handling Taiwan issue in developing Sino-US relations. President Bush reiterated that the US would adhere to the one-China policy and observe the three Sino-US joint communiques. It was a long-term policy of the US government. There was no change to it.

On March 4, the US State Department issued the annual Human Rights Report 2001, whose China section continued to accuse China groundlessly. On March 5, the Chinese Foreign Ministry Spokesman expressed the stance of the Chinese government on this report, saying that this report made charges upon China's jurisdiction system, ethnic policy and human rights status by making up stories and confounding right and wrong. It was just another US attempt to interfere with China's internal affairs under the pretext of human rights issues. The Chinese government and its people expressed their strong dissatisfaction and resolute objection to it. The Chinese government is devoted to promoting human rights and fundamental freedom. Human rights status in China is now the best in its history and is undergoing progress. This is a fact that no one will fail to see. The Chinese side demands the US to honor fundamental rules governing international relations, correct its wrong practices and cease interfering with China's internal affairs under the pretext of human rights issues.

On March 7, Zhou Wenzhong, Assistant Foreign Minister was instructed to summon the US Ambassador Randt and made a solemn representation to the US government on its permission of the so-called Taiwanese "Defense Minister" Tang Yiau-ming 's visit to the Unites States. On March 11, the US side, in disregard of China's resolute opposition allowed Taiwan"Defense Minister" Tang Yiau-ming to visit the Unites States to participate the so-called "US-Taiwan Summit Meeting On Defense" sponsored by "US-Taiwan Business Council" in Florida, and the US Deputy Secretary of Defense Wolfowitz and the US Assistant Secretary of State Kelly attended the meeting where they met with Tang. On March 16, Vice Minister Li Zhaoxing summoned the US Ambassador Randt and made a serious representation to the US government on its permission of Tang Yiau-ming's visit to the Unites States and other issues.

On March 19, the US Congress passed a resolution in support of Taiwan's "observer"status in the World Health Organization, which became a law signed by President Bush on April 4. On April 8, the Chinese Foreign Ministry Spokesman expounded the position of the Chinese government on it, stating that WHO is a UN special organization whose membership is limited to sovereign states. As part of China, Taiwan is by no means qualified to join WHO. The US acts supporting Taiwan's entry to WHO violated the One China Policy and the principles enshrined in the Three Joint Communiques between China and the US committed by the US itself, and hereby interfered with China's internal affairs. The Chinese side is firmly opposed to that, and has made solemn representations to the US side. The Chinese side demands that the US side correct its erroneous acts immediately and put an end to the connivance and support for Taiwan authorities in splitting China so as to prevent China-US relations from being severely affected.

From April 27 to May 3, Vice-President Hu Jintao paid an official visit to the United States at the invitation of US Vice President Cheney. During his visit, Hu visited Hawaii, New York, Washington D.C. and San Francisco and had extensive contacts with people from various circles such as local officials, businessmen, overseas Chinese and students from China. This visit attained the goals of strengthening contact, enhancing mutual understanding, seeking common ground while reserving differences and promoting cooperation, and maintained the momentum of high-level dialogue between the two countries. This visit produced positive influence on implementing the agreement reached between leaders of both China and the United States and promoting Sino-US relations of constructive cooperation. President Bush told Vice President Hu that he was expecting for the forthcoming visit by President Jiang Zemin to the United States in the fall of 2002. Vice President Hu invited Vice President Cheney to visit China. Cheney accepted the invitation with pleasure.

On July 13, the US Defense Department presented an annual report on China's military strength to the US Congress, unreasonably accusing China of the modernization of its national defense. On July 25, the Chinese Foreign Ministry Spokesman stated the position of the Chinese government, pointing out that whether measured by absolute quantity, per capita, per serviceman, its proportion to GDP or state fiscal expenditure, China's military spending was very low compared with major countries in the world. As a developing country, China takes economic construction its main task. In a climate of economic development and improvements of people's lives, it is very normal that China properly increases its defense spending to meet the costs of better living standard for servicemen and the modernization of its army.

On July 15, the US-China Security Review Commission of the US presented its first annual report to the US Congress, stirring up the strategic rivalry and competition between China and the United States, and unreasonably attacking China on a series of issues. On July 16, the Chinese Foreign Ministry Spokesman expounded the position of the Chinese government on this report, stating that this report with very evil motives groundlessly played up "China threat", and proposed irresponsibly trade and technology blockade against China. China is a peace-loving country, and China's development could only benefit world peace, stability and development. China-US economic and trade relations have always been reciprocal and mutually beneficial, and the development of China-US friendship and cooperation is the common aspiration of the two peoples. Any unprejudiced and peace-loving people should not fear China's progress and the development of China-US relations. We hope that all US people of insight could have a clear idea about the detrimental effect of the above-mentioned report, and oppose and resist against such a report. We request the US government to take concrete measures to eliminate the negative impact brought about by the report so as to avoid damages to bilateral relations and the common interests of the two countries.

On July 31, Foreign Minister Tang Jiaxuan met with US Secretary of State Colin Powell while attending the ARF meeting in Brunei. The two sides exchanged views on China-US relations as well as major international and regional issues of common concern. Both believed that the new breakthroughs in the cooperation in a wide range of fields such as anti-terrorism, economics and trade and the consultations on the UN affairs, South Asia, Korean Peninsula and other international and regional issues had promoted the common interests of both countries.

On August 2nd, President Bush signed the reconciled version of the Additional Appropriation Act for the Fiscal Year of 2002, which was passed by the House and Senate on July 23 and 24 respectively and contained Taiwan-related clauses. On August 3, the Chinese Foreign Ministry Spokesman expressed the stance of the Chinese government, pointing out that such a move by the US had seriously violated the principles of the three Sino-US Joint Communiqués and the "One China Policy", reiterated by the US government many times, and constitutes wanton interference in China's internal affairs. This is unacceptable for the Chinese side. The Chinese side had made solemn representations to the US government on many occasions. Although the US government expressed its opposition to the relevant clauses, it did not take effective measures to prevent the bill from being passed. The Chinese side expressed its strong dissatisfaction and firm opposition.

From August 25 to 27, Richard Armitage, Deputy Secretary of State of US came to China to attend the China-US vice-foreign ministerial political consultation. Vice President Hu Jintao, Vice Premier Qian Qichen and Foreign Minister Tang Jiaxuan met with him respectively. Vice Foreign Minister Li Zhaoxing held talks with Mr. Armitage. The two sides exchanged views on China-US relations and the preparations for the upcoming visit to the US by Chinese President Jiang Zemin. On the theory of "One country on each side of the Strait" dished out by Chen Shuibian on August 3, the US side reiterated that it would abide by the One China policy and it did not support the "Taiwan Independence". The US side also informed the Chinese side that it had decided to include the East Turkistan Islamic Movement (ETIM) in the international terrorist organization list.

On September 6, President Jiang Zemin received the phone call from US President Bush. The two sides exchanged views on international and regional issues as well as further development and enhancement of China-US constructive and cooperative relationship. From September 23 to 29, Assistant Foreign Minister Zhou Wenzhong led a delegation to the US to prepare for the upcoming visit of President Jiang. While in D.C., he met with major US officials including deputy Secretary of State Armitage.

On September 30, President Bush signed the State Department Authorization Act for the Fiscal Year of 2003, which contained many China-related clauses, including granting Taiwan the treatment of major NATO allies when providing defensive weapons and services to Taiwan, authorizing the US President to sell Taiwan the "Kidds" Class destroyers and other clauses relating to Tibet and human rights. While signing this bill, President Bush issued a statement, pointing out that the above-mentioned China-related clauses were inappropriate. There was no change to the one China policy by US and signing of this bill did not mean that these policy initiatives would be accepted by him or be transformed into foreign policy.

On October 2, the US "Congressional-executive Commission on China" issued an annual report, attaching China on the issue of human rights. On October 4, the Foreign Ministry Spokesman expressed the Chinese stance on the signing of State Department Authorization Act for the Fiscal Year of 2003, pointing out that relevant clauses in this act violated the three China-US Joint Communiqués and the One China Policy, which had been reiterated by the US side repeatedly, wantonly interfered in China's internal affairs and the Chinese side would never accept it. Although the Chinese side had made solemn representations to the US side on many occasions, this bill was still signed into law. The Chinese side expressed its strong dissatisfaction. On October 7, the US State Department published the 2002 International Religious Freedom Report, whose China section continued to accuse the Chinese government "exert strict restrictions on religious activities". On October 8, the Foreign Ministry Spokesman expressed the Chinese stance on this report, pointing out that the China section of this report disrespected the facts and made irresponsible accusations to the religious policy of China. It even went so far as to speak for the cult of "Falungong". Such action tramped over the basic norms of international relations and wantonly interfered in the internal affairs of China. The Chinese side expressed its strong dissatisfaction and firm opposition.

On October 17, US Under Secretary of State Bolton and Assistant Secretary Kelly met with Vice Foreign Ministers Li Zhaoxing, Wang Guangya and Wangyi respectively during their trip to China. The two sides exchanged views on China-US relations and international and regional issues of common concern. Mr. Bolton briefed the Chinese side on the nuclear issue on the Korean Peninsula. The Chinese side elaborated its stance on the issue, pointing out that the Chinese government had been all along for the denuclearization of the Korean Peninsula and the peace and stability of the Peninsula. The Chinese side hoped that the 1994 US-DPRK framework agreement would be earnestly implemented and this issue be resolved through dialogue.

From October 22 to 25, President Jiang Zemin paid a working visit to the US at the invitation of President Bush, during which he held the third meeting with President Bush for over a year. The two sides had a deep exchange of views on China-US relations and major international and regional issues of common concern and reached consensus on a wide range of issues. The two sides believed that China and US, the two big countries sharing wide and important common interests, should expand their exchange and cooperation in all fields, enhance their dialogues and coordination on major international and regional issues and push forward the continuous development of China-US constructed and cooperative relationship. The two sides agreed to strengthen high-level strategic dialogue and exchanges. President Jiang invited President Bush to visit China again and President Bush accepted his invitation with pleasure. Vice President Dick Cheney would visit China in early 2003 at the invitation of Vice President Hu Jintao. The two sides expressed their satisfaction with anti-terrorism cooperation between the two countries and agreed to strengthen this cooperation on the basis of reciprocity and mutual benefit and together fight against all forms of terrorism. The two sides agreed to resume military exchanges and hold DCT and engage in other exchanges in the near future. The two sides also decided to establish Vice-Foreign Ministerial consultation mechanism on the issues of strategic security, multilateral arms control and non-proliferation. The two sides also exchanged views on the issues of Iraq, nuclear situation on the Korean Peninsula, human rights, religious freedom, etc..

The two presidents exchanged views on the question of Taiwan. President Jiang elaborated the basic principle of "Peaceful Reunification and One Country, Two Systems" by the Chinese government on the resolution of the question of Taiwan. He emphasized that the separatist activities of the "Taiwan-independence" forces were the biggest threat to the stability of the Strait and the development of China-US relations and hoped the US side to abide by the One China Policy and three China-US Joint Communique. President Bush reiterated that the US adhered One China Policy, abided by the three China-US Joint Communiqués and was against "Taiwan Independence".

II. China-US Trade Relations and Economic and Technical Cooperation

1. Bilateral Trade and Investment

The year of 2001 witnessed a continuous good momentum in the bilateral trade, investment and economic and technical cooperation between China and US. According to the statistics of the Customs General Administration of China (CGAC), China-US trade reached a total of US$ 80.48 billion, up by 8.1% over the same period last year; China's export to US was US$ 54.28 billion, up by 4.2%; the import was US$ 26.2 billion, up by 17.2%; China had a surplus of US$ 28.08 billion. US was the second largest trading partner of China, while China is the 4th largest trading partner of US. As the end of 2001, US has invested 33734 projects in China, and US contractual investment in China reached US$ 67.774 billion, and the paid-in investment was US$ 35.03 billion.

In 2002, the China-US bilateral trade, investment and economic and technical cooperation increased greatly. According to the data of the GACC, the China-US trade reached US$ 70.04 billion during January to September, an increase of 16.5% over the same period last year. China's export to US was US$50.19, up by 24.5% over the previous year, and China's import from US was US$19.84, up by 0.2%; a surplus of US$30.35 billion for China. During January to September, US invested 2403 projects in China, up 28.3% over the previous year; the contractual investment of the US was US$7.33 billion, up by 33.1%; the in-paid investment of the US was US$3.95, up by 14.8%. As of the end of September 2002, US had invested 36308 projects in China, with a contractual investment of US$75.45 billion and an in-paid investment of US$38.84 billion.

2. High Level Exchanges in the Economic & Trade Area

On July 31, 2002, Sun Zhenyu, vice Minister of the Ministry of Foreign Trade and Economic Cooperation(MOFTEC) signed the China-US Agreed Framework on the Cooperation of Trade and Development with Thelma J. Askey, director of the US Trade and Development Agency.

On August 31, Vice Prime Minister Li Langqing met with Robert · Kripowicz, vice Secretary of US Energy Department. On September 10, US Secretary of Treasury Paul O'Neill participated in the 8th APEC Ministerial Meeting. On September 10, President Jiang Zemin met with US delegation headed by Paul O'Neill in Zhongnanhai. And vice Minister Li Lanqing and Wen Jiabao met with the delegation respectively the same day as well.

On September 11, the State Planning Commission of China and the US Department of Energy, Department of Commerce jointly held the 3rd China-US Petroleum and Gas Forum in Beijing. On the same day, the 14th session of the China-US joint Commission was convened in Beijing, co-chaired by Chinese Finance Minister Xiang Huaicheng and US Secretary of Treasury O'Neill. On October 2, the Chinese Delegation for the Procurement of Boeing Airplanes headed by Zhang Guobao, Vice Minister of the State Development and Planning Commission and the representatives form the Boeing Corporation held a signing ceremony for the procurement of 30 Boeing airplanes in the US Department of Commerce.

In April 2002, Robert B. Zoellick, US trade representative?visited China. At the third part of the month, Evans, US Commerce Secretary visited China and jointly chaired the 14th China-US Joint Trade and Commerce Commission with Shi Guangsheng, Minister of MOFTEC. In July, US Agricultural minister visited China. In September, US vice trade representative headed a delegation to visit China and held talks with Long Yongtu, Vice Minister of the MOFTEC. As was part of the preparation for President Jiang's visit to US as well as the Summit of the two heads of state in the area of trade and economy.

3. The Negotiation of China's Entry into the World Trade Organization

On June 9, 200l, Shi Guangsheng, Chinese Minister of Foreign Trade and Economic Cooperation and Zoellick, the US Trade Representative reached comprehensive consensus on the major issues left over from the multilatera1 negotiations concerning China's WTO accession, during the Asia-Pacifc Economic Cooperation (APEC) Shanghai Meeting of Ministors Responsible for Trade. China formally became a WTO member in December.

4. The US Permanent Normal Trade Relations (the Most-Favored-Nation status) for China

On June l, 200l, US President George W. Bush sent letters to the heads of the Senate and the House of Representatives informing his decision to extend Normal Trade Relations status for China, and asked for the support of the Congress. On July 19, the Confederate resolution not to grant China the extension of Normal Trade Relations status was overruled with l69 votes in favor and 259 against in the House of Representatives. This enabled the smooth extension of the Normal Trade Relations to China. On December 27, President Bush signed a proclamation granting Permanent Normal Trading Relations(PNTR) status to China, terminating the annual Jackson-Vanik trade verification process for China in the US Congress. The new trade status took effect as of January 1, 2002

III. China-US Exchanges and Cooperation in the Fields of Scienceand Technology, Culture, Education and Environmental Protection

The year 2001 witnessed the continued development of the China-US exchanges and cooperation in the fields of science and technology, culture, education and environmental protection.

On March 28, the China Seismological Bureau, the National Natural Science Foundation of the People's Republic of China, the US Geological Survey of the Department of the Interior of the USA. and the US National Science Foundation extended in Washington Protocol between the China Seismological Bureau and the National Natural Science Foundation of the People's Republic of China and the National Science Foundation and the US geological Survey of the Department of the Interior of the United States of America for Scientific and Technical Cooperation in Earthquake Studies.

From April 13 to 25, Lv Fuyan, vice Minister of Education, was invited to visit the United States to observe the education of the information technology and biological engineering in universities, the trend of that education and the application of the scientific and technological achievements.

On April 25, Yang Jiechi, Chinese Ambassador to the United States, exchanged letters with Kenneth C. Brill, acting assistant Secretary of State, to extend Agreement between the Government of the People's Republic of China and the Government of the United States of America on Cooperation in Science and Technology.

On May 7, President Jiang Zemin met with visiting guest, Richard Levin, President of Yale University.

On November 29, State Forestry Administration exchanged letters with the US Department of the Interior to extend to November 2006 Protocol on Cooperation and Exchanges in the Field of Conservation of Nature between the Department of the Interior of the United States of America and the Ministry of Forestry of the People's Republic of China

In the year of 2001, the mutual visits between China and the Untied States were up to 170, involving 3,542 people. The visits from the US side were 65 and the number of the visitors was 2,031. The visits from the China side were 105 and the number of the visitors was 1,511.

In the year of 2002, the China-US exchanges and cooperation in the fields of science and technology, environmental protection, education, culture and health continued to grow.

In April, the tenth China-US Joint Commission Meeting on Science and Technology was held in Beijing. Xu Guanhua, Minister of Science and Technology, and Marburger, assistant to the President for science and technology and director of office of science and technology policy of the White House, jointly hosted the meeting. After the meeting, President Jiang Zemin met with the US delegation. At the same month, Xie Zhenghua, Minister of State Environmental Protection Administration, met with the visiting guests. They exchanged views on the Summit of Sustainable Development of the World, climate changes and the cooperation in the field of environmental protection. Also in this month, Zhang Wenkang, Vice Minister of Health met with Paula J. Dobriansky, under secretary of state of the United States, to discuss the cooperation between China and the United States in the field of ADIS prevention and cure and Tai Wan issue in World Health Organization. In this month, Wang Longde, Vice Minister of Health, headed a delegation to the United States to observe the management of the US health service organizations and medical resources.

In May, Wang Zhijia, Director General of Department of International Cooperation of the State Environmental Protection Administration, together with Mr. Turner, US Assistant Secretary of State, co-chaired the "China-US Environmental Policy Forum" in Beijing. The two sides exchanged views concerning management of coastal areas, land-based pollution, invasion of alien species, sand storm and land degradation. Also in May, Sclafani, policy advisor to US Minister on Education visited China and discussed with the Chinese Ministry of Education about the operation and implementation of China-US web-based E-Language Project. And also during the same month, Zhang Xinsheng, Vice Minister of Ministry of Education, held talks with Paige, US Education Secretary about the above-mentioned E-Language Project. And also, during May, Huang Jiefu, Chinese Vice Minister of Health, led a delegation to US to explore new ways of strengthening exchanges and cooperation in education, scientific and technological research in medical fields.

In June, Chen Zhu, Vice Minister of Chinese Academy of Science as well as the Chinese person to contact on gene study within China-US Scientific and Technological Framework, visited US and reached initial intent with the US side on swine genome sequencing. Also in June, Zhang Wenkang, Chinese Minister of Health, led a delegation to US and signed a MOU with his counterpart on cooperation of prevention and cure of AIDS.

In July, Huang Jiefu, Vice Minister of Health, met with Turner, US Assistant Secretary of State, and the two sides exchanged views on cooperation concerning prevention and cure of AIDS. Also in July, the Chinese Elementary Education Study Group visited US. During that same month, the US "Chinese History and Culture Study Group" visited China.

In August, Liu Yanhua, Vice Minister of the Ministry of Science and Technology, visited the US, held further talks and took further measures with US office on scientific and technological policy of the White House on the China-US swine genome sequencing. Also in August, the Torch High-tech Industry Development Center and the administrative council of Zhong Guancun Science and Technology Park signed an Agreement on the Establishment of China-US Science and Technology Exploration Center in Mariana University, and the US Commerce Department expressed their congratulations on this.

In September, China and US held the first specialist group meeting on cooperation in E-Language Project. Zhang Xinsheng, Chinese Vice Minister of Education, and Sclafani, policy advisor to US Education Secretary, co-chaired this meeting and agreed to sign a MOU of this project. In October, Chinese Special Education Delegation visited US.

From January to October, there were altogether 88 cultural exchanges programs between China and the US and 1,202 persons involved. Major Programs included Magician David Copperfield's visit to China, the famous violinist Parman's performance in China, Gansu Provincial Singing and Dancing Delegation's roundtrip performance featuring Chinese Dunhuang arts across US as well as US "After 9.11- the Snapshots" and etc.

IV. Military Exchanges Between China and the US

From January to March 2001, the Sino-US military relations had been progressing steadily. The Chinese Military Environmental Protection Delegation of the PLA visited the US from February 12 to 22. A Military Legal Delegation followed from March 5 to 15. The President of the US Air Force University visited China from February 10 to 16. The US National Defense University Capstone Delegation visited China from February 14 to 17. The US Air War College Delegation visited China on March 6-13. Denise Blair, Admiral, Commander-in-Chief of the US Pacific Command visited China on March 13-18.

On April 1, there took place the Air-Collision Incident between China and the US. The US Ministry of Defense unilaterally announced to break off the military contacts between the two sides. Following that, the military exchanges between the two sides stopped.

From September 14 to 15, the special meeting of China-US Military Maritime Consultation Agreement was held in Guam, USA, which led to the thawing of the suspended Sino-US military relations. From December 5 to 7, the annual working group meeting of Sino-US consultative mechanism to strengthen military maritime safety was held in Beijing.

In 2002, the Sino-US military relations improved gradually. The US National Defense University Capstone Delegations and Student Delegations visited China in February, May, July, and October respectively. In April, the Delegation of US Air Force Military Academy visited China. The annual meeting of Sino-US consultative mechanism to strengthen military maritime safety was held in April and the 1st meeting of working group for Sino-US military air and maritime safety was held in August. In June, Rodman, US Assistant Secretary of Defense led a military delegation to China and exchanged views with the Chinese side on how to resume the military exchanges between the US and China.

V. Sino-US Law Enforcement Cooperation

On March 8, 2001, the Treaty between the People's Republic of China and the United States of America on Mutual Legal Assistance in Criminal Matters entered into force formally, which laid a legal foundation for the cooperation between China and the US in the field of law enforcement. Enditem

(Source: Ministry of Foreign Affairs, the People's Republic of China)

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