DOBBS:
Mr. Premier, you've had a whirlwind visit to the United States,
your first official visit as premier of China. Give us your impression.
WEN (through translator): In fact, this is a very important
visit. And this visit has also been very successful. In a few
hours time, I will be leaving your country, the United States.
So here, I want to take this opportunity to express my thanks
to President Bush, and to the government and people of the United
States, for the very warm hospitality I have enjoyed during this
visit. And I think this warm hospitality is not just for myself,
but is also for the 1.3 billion people of China.
During my visit, I had talks with President Bush and other leaders
of this country in a friendly, candid, cooperative and a constructive
atmosphere. We had in-depth exchanges of ideas about China-U.S.
relations, about major international questions, and reached a
broad major understanding. And we are both of the view that the
further strengthening and improvement of China-U.S. relations
not only serves the interest of our two peoples, but is also conducive
to peace and stability in the whole world.
To be sure, there are differences between our two countries,
and it is hardly possible for us to see eye to eye with each other
on 100 percent of things. But we can make 100 percent of effort
to remove these differences and ensure smooth development of our
constructive and cooperative relationship.
This visit for me has been a very pleasant experience. Although
it is quite short -- it lasted only three days -- I attended up
to 30 various functions and activities, and I reached out extensively
to people of different circles in this country. I have brought
with me the best of wishes of the Chinese people towards the American
people, and I'm sure I will bring back to the Chinese people a
positive message of this desire of the American people for the
further development and growth of our relations.
DOBBS: Mr. Premier, one of the
issues has been the rhetoric of President Bush from the time he
took office. We move from statements about viewing China as a
strategic competitor, to now, with the culmination of your visit,
talking about diplomatic partners. If you would frame for us what
you think this means as an understanding between you, your government,
and President Bush.
WEN: We both believe that the
China-U.S. bilateral relationship is the most important state-to-state
relationship in our world. The development of our relations is
conducive not just to peace and stability in Asia-Pacific, but
also to peace and prosperity of the whole world.
We are of the same view that to have a mature bilateral relationship,
both our two sides should work carefully to safeguard such a relationship.
We cannot allow the bond of friendship between our two countries
to be broken simply because of some minor problems. This would
require strategic vision and strategic courage in the perception
and handling of China-U.S. relations.
DOBBS: Mr. Premier, one of the
tests, obviously, will come on the Korean Peninsula, the talks,
the six-party talks that you and your government started with
the North Koreans. Very important to maintaining stability on
the peninsula.
Obviously, this United States government is critically interested
in the elimination of the North Korean nuclear weapons program.
Is there a common view on the part of the Chinese government?
And is the Chinese government going to continue to take the lead
in achieving that goal?
WEN: China does not believe that
the Korean Peninsula should have nuclear weapons. So therefore,
we believe that the nuclear issue on the Korean Peninsula should
be resolved through peaceful means and through diplomatic means
in the interest of peace and stability on the peninsula. Active
efforts to promote the six-party talks represents the [desire
for a] peaceful resolution of this issue. The Chinese government
will actively undertake various coordinating and mediating efforts
to facilitate the six-party talks.
DOBBS: Mr. Premier, on another
very sensitive issue which tensions are rising, Taiwan. Your government
has made it very clear that it does not accept the referendum
that is proceeding in Taiwan. President Bush called upon the Taiwanese
government to withdraw the referendum. President Chen said the
referendum goes ahead.
What is your best judgment of the situation and your view as
to what happens next?
WEN: The position of the Chinese government on a question
of Taiwan has always been consistent. That is, we always follow
the principle of peaceful reunification and one country, two systems.
And we have been doing a great deal. And we have been making our
utmost effort and utmost sincerity to achieve this prospect.
However, such efforts by our side have met with the challenges
from the Taiwan authority and from the Taiwan separatist forces.
We respect the desire of the Taiwan people to develop and pursue
democracy. However, we firmly oppose the attempts by certain separatist
forces in Taiwan to pursue Taiwan independence under the disguise
of promoting democracy in an attempt to cut of Taiwan from the
mainland.
So we have expressed our firm determination and strength to safeguard
state unity that is exactly designed to safeguard peace and stability
in the ... area. We also made it very clear that as long as the
slightest hope for peace exists, we will exert our utmost to strive
for the peaceful reunification of the motherland. We appreciate
the reaffirmation by President Bush of his one-China policy, and
for his sending a clear signal to Taiwan security forces.
DOBBS: President Bush ... also
said that he wanted to preserve the status quo as a matter of
U.S. policy. That is, status quo, vis-?vis China, as well as Taiwan.
The status quo, in your judgment, is it endangered by this referendum
significantly?
WEN: The purpose of the so-called
defensive referendum that [Taiwan President] Chen Shui-bian has
been going after is to undermine the status quo. And it is designed
to cut off Taiwan from the sacred territory of the Chinese motherland.
So we have to have a clear understanding of the nature of what
he's going after. In fact, the democracy is just a disguise, an
excuse. And so his efforts look to be quite deceptive. ...
DOBBS: Premier Wen, in 2000, your
government issued a white paper. And with one condition, which
could lead to war, would be the obvious end of all opportunity
for reunification talks. How [confident are you] at this stage
about reunification talks between Taiwan and China proceeding
and leading to a constructive dialogue?
WEN: I want to make it clear,
first and foremost, that the potential for war is by no means
targeted at our [unintelligible], but rather it targets the separatist
supporters in Taiwan. The people in Taiwan are our blood brothers
and sisters. So as long as even the slightest hope for peace exists,
we will work to our utmost to strive for the peaceful process.
In fact, with the eight-point proposal put forward by President
Jiang Zemin, and with a series of measures the mainland has initiated,
we have repeatedly reaffirmed that as long as Taiwan recognizes
the one-China principle, the two sides of the Taiwan Straits may
have dialogue. And the dialogues and talks can cover any topic.
But the problem is -- it is the [regime] in authority which rejects
such talks and negotiations with mainland.
DOBBS: Mr. Premier, one of the
talks -- the most important talks in your early premiership has
been with President Bush on the issue of trade. You are responsible
for the entire vast Chinese economy. And one of the most difficult
issues between our countries is the trade imbalance. Tremendous
deficits, could reach 0 billion this year. Do you have the
[sense] that you and President Bush have reached an understanding
about reaching a balance in the near balance in the near future
in trade between our two countries?
WEN: Firstly, I would like to
say that the rapid expansion of trade between our two countries
has benefited our two peoples. Twenty-five years ago, trade between
our two countries was barely valued at .5 billion. But this
year, two-way trade between us tops 0 billion. Is it true to
say that the development of trade only benefits one country at
the expense of the other? Definitely not. Trade between our two
countries has brought tremendous benefit to the people of both
countries.
We should recognize the fact that the United States does have
a sizeable deficit in trade with China. And so in a constructive
approach I proposed to President Bush five proposals.
Firstly, we seek mutual benefits and win-win results. We should
look at the larger picture and larger interests of our trade for
each country. We should not just to consider our own interests,
we should also take into account the interests of the other country.
Secondly, we should give priority to development, that is, reducing
American imports from China is not a solution. We should expand
instead U.S. exports to China. That would require a simultaneous
effort by the United States to lift the various restrictions on
exporting to the Chinese market.
Thirdly, the two countries should establish and improve a coordinating
mechanism for the resolution of trade issues. I proposed this
specifically to President Bush to raise the level of our joint
committee on commerce and trade. ... This committee will now be
headed by our vice premier, Madame Wu Yi, while on your side,
Secretary [of Commerce Don] Evans and Trade Representative [Robert]
Zoellick will chair this commission.
Fourthly, the two countries should approach trade issues on the
basis of equal consultations, rather than imposing restrictions
or sanctions.
Fifthly, economic and trade issues should not be politicized.
President Bush expressed full agreement with all my five proposals.
As far as I know, the two sides are making positive preparation
for launching the inaugural session of the upgraded JCCT session
next spring.
DOBBS: Mr. Premier, your sense
of how quickly a trade balance, recognizing all of the elements
that you have just enumerated, how quickly do you think a meaningful
trade balance can be achieved between China and the United States?
WEN: In fact, I think this will
be an objective that would require some time and joint efforts
by the two sides. We have demonstrated our utmost sincerity and
we are very much ready to increase our imports from your country.
At the same time, we hope that United States will open more to
China, especially in the high-tech sector. I'm an optimist.
DOBBS: One -- optimism usually
serves best those in commerce. And this has been a long process.
It has been a miracle for China. We have moved into an era that
is new to our economics, new to our political leaders. But one
thing that remains, and that is politics and economics do combine
no matter how much we would like them not to at times. President
Bush [is] under considerable pressure, political pressure in the
Congress to react with tariffs, to seek a change in the trade
balance as quickly as possible, through political means. Do you
believe that we will see that trade deficit eliminated to the
point quickly enough so that it will not be a political problem
for President Bush?
WEN: In fact, China has adopted
active measures to address that. And we will continue to take
such measures. The five-point proposal that I just listed represents
an effort by senior leaders of the two countries to take a strategic
look at where we are on this question. Naturally this would also
require closer mutual understanding between the two countries.
I want to point out that the U.S. exports overall increased by
15 percent this year. But in the first 10 months of this year,
its trade with China grew by 20 percent, whereas its trade with
other countries only increased by about 2 to 3 percentage points.
I should also say that the U.S. exports, to China in particular,
have increased by fairly big margins. That is my first point.
Secondly, this year China's total trade, including import and
export, is valued at about 0 billion, but our imports have
been growing at a pace of more than 40 percent whereas exports
only went up by 32 percent.
We also need to keep in mind the fact that when U.S. trade deficit
is increasing, China's trade deficit with other countries in Asia
is also increasing. And so there is indeed a structural nature
associated with [the] U.S. trade imbalance, and also that is a
reflection of shifting commercial patterns and relations among
different countries. Despite that, we will still try to promote
a balance in our bilateral trade in an active and positive approach.
And our efforts will be applied not just in this time -- in this
quite extraordinary political time for the United States -- but
it will be extended for the long term.
DOBBS: Mr. Premier, I just want
to say thank you for accelerating the progress towards that balance
and accelerating the mutual understanding that's so important
to both our peoples, we thank you very much, Premier Wen.