ASEM/EU–CHINA

Premier Wen Jiabao attended the Asia–Europe Meeting (ASEM) Summit in Brussels on 4 October. He presented the opening meeting with a five-point plan for advancing co-operation between Europe and Asia from a strategic and long term perspective (full text of his speech in XHNA, 5 Oct.). He said that they should: a) jointly push forward global economic growth, intensify macroeconomic policy co-ordination, cautiously manage the timing and pace of an exit strategy from economic stimulus, and keep the exchange rates of major reserve currencies relatively stable; b) jointly push forward reform of the international economic and financial system, improve decision making in international financial institutions and give a greater say to developing countries; c) address global challenges together, in particular that of climate change on the principle of “common but differentiated responsibilities”; d) work to facilitate exchanges of mutual learning among civilizations; and e) uphold peace and stability in Asia and Europe. He also made some concrete proposals:

In the sidelines he met President Sarkozy of France and told him that China expected France to take new steps towards pushing the European Union for more positive policies on China (XHNA, 4 Oct.). He also had side meetings with the Japanese Prime Minister, the President of South Korea, the European Troika, the President of the European Central Bank, the EU Commissioner for Economic and Monetary Affairs and the German Chancellor (XHNA, 6 Oct.). He urged the EU to treat the RMB exchange rate issue in an objective and fair way that would benefit the EU. He said China would further reform the yuan exchange rate mechanism to increase the country's flexibility and would increase its imports from the EU (XHNA, 6 Oct.).

Premier Wen addressed the EU-China Summit on 6 October and called on the EU to recognize China's market economy status and to lift the arms embargo. He suggested that the summit should enhance its role in providing strategic guidance and clear the way for the further advancement of China–EU ties. He hoped that the Europeans would “take an objective and fair stance on China's currency exchange rate.” He said that China had confidence in the EU and believed that a strong and stable EU was good for the world as well as China. He hoped that the EU would respect China's major concerns and core interests and formulate more positive and visionary policies towards China (XHNA, 6 Oct.). Following the meeting the two sides issued a joint communiqué.

Premier Wen then attended the China–EU Business Summit and addressed the meeting (text in XHNA, 6 Oct.). He said that the trade issue should not be politicized. China pursued balanced and sustainable trade, and any substantial revaluation of the yuan, as the US was demanding, would hurt the world economy because of the damage it would do to China, which had contributed about half of global growth last year. He urged European businessmen not to pressure China on the issue and said that there would gradually be more flexibility in the exchange rate. He said that foreign businesses operating in China would enjoy the same national treatment as Chinese enterprises on issues of intellectual property, independent innovation and government procurement (XHNA, 7 Oct.). He also attended the China–EU Cultural Forum.

ASEAN/EAS

Premier Wen led a substantial delegation to the ASEAN-related meetings in Hanoi from 28 to 30 October. These were the 13th Summit between China and ASEAN, the 13th Summit between China and ASEAN + 3 and the fifth East Asia Summit. In advance of the meeting Assistant Foreign Minister Hu Zhengyue said that “China attaches importance to and actively takes part in East Asian co-operation. In the series of meetings, China will review with other countries the co-operation that has been carried out and discuss how to further promote the integration process of East Asian co-operation.” The China–ASEAN Free Trade Area launched on 1 January 2010 and bilateral trade increased by 44 per cent in the first nine months of the year to reach US$211.3 billion (XHNA, 21 Oct.).

Premier Wen had a number of side meetings during his stay in Hanoi. He met the Vietnamese Prime Minister Nguyen Tan Dung, the Cambodian Prime Minister, Hun Sen, and the Lao Prime Minister, Bouasone Bouphavanah on 28 October for separate meetings to discuss bilateral and other issues. With the Vietnamese Prime Minister, Wen said that the South China Sea should be handled in a proper fashion, as it was of vital importance in the sound and stable development of their bilateral relations (XHNA, 28 Oct.). He met the Singapore Prime Minister, Lee Hsien Loong, on 29 October. He also had meetings with the Prime Ministers of India and of Australia (XHNA, 30 Oct.). There was brief informal meeting with the Japanese Prime Minister, somewhat overshadowed by continuing difficulties in the relationship over the East China Sea.

Foreign Minister Yang Jiechi had a meeting with his Japanese counterpart Seiji Maehara on 29 October, their first meeting since the East China Sea incident (XHNA, 29 Oct.). Japanese press reports contained quite detailed accounts of their wide-ranging discussions suggesting that relations were on the mend. However, the Chinese reacted strongly to what had been reported.

Premier Wen addressed the 13th China–ASEAN leaders meeting on 29 October (text in XHNA, 29 Oct.). He noted how mutual trust had increased and co-operation had deepened. The two sides had helped safeguard regional peace and stability. He said that China treasured its traditional friendship with ASEAN countries and suggested six ways of further improving relations: a) promote trade relations and strive to reach a target of US$500 billion in bilateral trade by 2015, for which China was willing to establish one economic and trade co-operation area in each ASEAN country over the next five years; b) use Chinese loans and the “China–ASEAN Investment Co-operation Fund” to improve links and communications; c) push for openness and the merging of financial and capital markets in an orderly manner; d) improve agricultural co-operation, for which China was willing to help with training and the provision of experts; e) increase investment in sustainable development, and jointly deal with climate change, natural disasters and other challenges; f) improve understanding and increase cultural, educational and youth exchanges, and designate 2011 as China-ASEAN Year of Friendly Exchange. The meeting adopted and issued a joint declaration on implementing the Second Five-Year Action Plan for China–ASEAN strategic partnership for peace and prosperity, and a Joint Statement between Chinese and ASEAN Leaders on Sustainable Development (XHNA, 29 Oct.).

Premier Wen put forward a four-point proposal at the ASEAN + 3 meeting which he described as the main vehicle for East Asian co-operation. He said that stronger ASEAN + 3 co-operation was essential to the revitalization of East Asia. His proposals were: a) to accelerate the establishment of an East Asia Free-Trade Area. China had already put forward a roadmap for ASEAN + 3 trade facilitation over the next five years, and would be consulting other parties on specific measures to advance trade and investment liberalization. He announced a contribution of a further US$1 million to the ASEAN + 3 Co-operation Fund; b) to deepen financial co-operation, and make the Chiang Mai Initiative more effective. They should continue to build the Asian Bond Market and look at ways to encourage cross-border bond transaction and settlement in the region; c) to promote co-operation in other fields including food security, agriculture, infrastructure construction, as well as education. China would help build the Emergency Rice Reserve and donate US$1 million to it on top of the 300,000 tons of rice already pledged. China would like to support a Master Plan on ASEAN connectivity of transport links. China supported the establishment of an ASEAN + 3 education ministers' meeting; d) to improve co-ordination on major international issues such as climate change (XHNA, 29 October).

Yang Jiechi had a meeting with US Secretary of State Hillary Clinton on 30 October. One of the main items of discussion was the Diaoyu/Senkaku question, as the meeting followed an earlier confirmation by the US Secretary of State that the question did fall within the purview of the US Japan security alliance. Yang reiterated China's position, and urged the US to act cautiously on the issue and not to make irresponsible remarks. He noted more widely that, with joint efforts, relations between China and the US had managed to keep a stable momentum (XHNA, 30 October). China later strongly rejected as “wishful thinking” the idea that had apparently been floated at the meeting that the US might host three-way talks on security issues between China, Japan and the US (XHNA, 1 Nov.).

Premier Wen told the East Asia Summit participants that China was ready to work together with other parties to deepen East Asian co-operation on the basis of upholding the established principles and purposes of the East Asia Summit. He said that the leading role of ASEAN should be respected and that existing mechanisms also had a role to play. Wen said the summit had stuck to the orientation of the strategic forum “led by leaders” and launched fruitful dialogue and co-operation in five key fields, namely finance, energy, education, bird flu control and disaster rescue. He welcomed the participation of Russia and the US and hoped they would play a constructive role (XHNA, 30 Oct.).

Leaders of China, Japan and South Korea also met together on 29 October. Premier Wen noted that co-operation between the three countries had been developing soundly and was an important part of East Asian co-operation. He proposed that they push for completion of the study plan for a China–Japan–ROK Free-Trade Area by 2012 and that they reach a tripartite investment agreement soon. He suggested that they increase co-operation in S&T innovation in key sectors such as energy conservation, environment protection, new energy resources and renewable energy (XHNA, 29 Oct.).

APEC

President Hu attended the APEC Summit held in Yokohama on 12 and 13 November, where he delivered a keynote speech (full text in XHNA, 13 Nov.). Hu said that China was firmly committed to the path of peaceful development, and strove for common development of all nations while pursuing its own development. China would continue to pursue open economy and common and sustainable development as well as balanced growth of domestic and external demand. It would continue to bring in talent and investment from overseas, and build an open and transparent legal environment. China would work with the rest of the international community to counter climate challenges under the principles of common but differentiated responsibilities (XHNA, 13 Nov.).

In the summit margins, he met the Japanese Prime Minister, the Hong Kong Chief Executive, Donald Tsang, and Lien Chan, the Taiwanese representative (XHNA, 13 Nov.). With Lien Chan, honorary Chairman of the Kuomintang, Hu noted that relations across the Taiwan Strait had maintained a sound momentum, and the Economic Co-operation Framework Agreement had been an important achievement. Both sides needed to value these achievements and push forward a stable and continued development of relations. He said that China would strive to tackle the relatively easy problems first and proceed with economic co-operation before taking on the thornier issues of political exchanges. The new turn in the relationship was because both sides had built trust and developed a positive interaction in opposing Taiwan independence and upholding the 1992 Consensus (XHNA, 13 Nov.).

G20

The Chinese Foreign Ministry spokesman said on 21 October that China hoped that the forthcoming G20 Summit would promote global economic growth in a robust, sustainable and balanced manner (XHNA, 21 Oct.). President Hu Jintao arrived in Seoul on 11 November for the G20 meeting. He had separate bilateral meetings with President Obama of the United States, President Dmitri Medvedev of the Russian Federation, and President Lee Myung Bak of South Korea on 11 November. At the Summit itself, Hu put forward a four point proposal for realizing strong, sustainable and balanced growth (text of his speech in XHNA, 12 Nov.). They were:

The summit closed with the issue of a joint communiqué. According to Xinhua, it showed obvious compromises on contentious issues. The summit had been held at a time of tension among G20 countries over issues including trade imbalances and currency policies, and matters had been made worse by the US quantitative easing which had “caused uproar” among some G20 members, including China (XHNA, 12 Nov.).

Climate Change

China hosted talks under the UN Framework Convention on Climate Change (UNFCC) in Tianjin from 2 to 9 October in a final round of preparation for the UN Climate Change Conference in Cancun (XHNA, 4 Oct.). State Councillor Dai Bingguo addressed the opening session and pledged that China would continue to play an active and constructive part in climate talks. He said that the negotiations should stick to the basic framework of the UNFCCC and Kyoto Protocol and the mandate of the Bali Roadmap and follow the principle of “common but differentiated responsibilities.” He added that developed countries should set targets to take the lead in reducing greenhouse gas emissions and arrangements should be made to provide adequate financial and technological support to developing countries. He noted that China's energy demand would see further reasonable growth, and that therefore China would face significant constraints in controlling emissions. It would nevertheless stick to the targets it had announced in 2009 (XHNA, 4 Oct.). China's Chief Negotiator, Su Wei, complained that developed countries were being “laggards in terms of countering the challenge of climate change. That's a major reason why no breakthrough has been achieved in climate negotiations.” He said they should take on their due responsibilities, having been responsible for over 80 per cent of emissions over the past 200 years (XHNA, 5 Oct.). The session closed on 9 October and the Chinese press quoted Christiana Figueres, the Executive Secretary of the UNFCCC, as saying that it had produced some concrete results and that the text of the draft decision negotiated at Tianjin would be submitted to the Cancun conference in November. The Chinese chief negotiator was also quoted as saying that the outcome had exceeded their original expectations (XHNA, 9 Oct.).

Premier Wen Jiabao addressed a meeting of the National Leading Group on Climate Change on 19 November. The meeting heard that

The meeting also reported that

In pre-reporting of the Cancun meeting, the chief Chinese negotiator, Su Wei, said that China hoped for balanced progress, especially on the four core issues of mitigation, adaptation, financial support and technology transfer. He said that China would play an active constructive role at the conference (XHNA, 29 Nov.). China told the conference that it had reduced its pollutant emissions from 2006 levels by 10 per cent, and reduced energy consumption per 10,000 yuan of GDP by 20 per cent (XHNA, 1 Dec.). In an interview with Xinhua on 4 Dec, Su Wei said that China would not compromise on issues of principle such as the continuation of the Kyoto Protocol, although he said China could compromise on other issues. He attacked those countries (Japan) that appeared opposed to the Kyoto Protocol. He said that there had been some progress in the first week on adaptation, finance, technology and mitigation for developing countries, but it was hard to say if final results could be achieved (XHNA, 4 Dec.). Xinhua commentary on 6 December stressed that China remained hopeful of achieving substantial results and had shown the “image of a responsible country” (XHNA, 6 Dec.). China supported the two draft documents presented to the conference although it felt that they still had some shortcomings. The leader of the Chinese delegation, Xie Zhenhua, said that

The Chinese delegation said that the conference had sent positive signals to the international community, and had managed to reach a deal to fight global warming (overcoming last minute objections from Bolivia). The delegation expected all parties to display strong political will and conclude the negotiation on the second commitment period of the Kyoto Protocol at the next conference, to be held in Durban, South Africa. In particular, that conference should establish effective mechanisms for finance, technology transfer and adaptation to support developing countries' efforts in addressing climate change, successfully conclude the negotiation in accordance with the mandate of the Bali Roadmap and take a big step forward in international co-operation in combating climate change (XHNA, 11 Dec.)

President Hu Jintao

President Hu Jintao paid a state visit to France and Portugal from 4 to 7 November. He arrived in France on 4 November and had talks with President Sarkozy. Hu noted the strategic and global nature of the relationship and promised to deepen the comprehensive strategic partnership that they had. Bilateral trade was expected to reach US$40 billion this year (after falling back from a high point of US$38 billion in 2008) and the two countries had carried out extensive exchanges and co-operation in education, science and technology, and culture, and kept close communication and co-ordination on major international issues. President Sarkozy said France was glad to see China's achievements in reform and opening up, which was an unprecedented process in world history. President Hu put forward a four-point proposal for improving ties, including developing mutual respect for each other's core interests and major concerns. He called for a doubling of trade by 2015, further co-operation in nuclear energy and aviation, and tapping potential in energy efficiency and environmental protection, new energy resources, new materials, electric cars, information and telecommunications, high-end product manufacturing and finance. Both Presidents spoke of co-operating further in the G20. After the meeting they issued a joint statement (text in XHNA, 5 Nov.) and attended the signing ceremony for a number of co-operation documents covering a wide range of areas, including nuclear energy, aviation, finance, energy efficiency, environmental protection, climate change and culture. China is expected to buy a large number of aircraft including A320s, A330s and A350s. A multibillion-dollar agreement was also signed with Areva on the long-term supply of uranium (XHNA, 4 Nov.). Hu also met the Senate leader, Gerard Larcher, and the speaker of the National Assembly, Bernar Accoyer. After his meetings in Paris he visited Nice and had further talks with President Sarkozy there. He left France on 6 November. The Chinese press said that his visit had opened a new chapter in the comprehensive strategic partnership with France. The total value of trade agreements signed could reach €20 billion (XHNA, 7 Nov.).

President Hu arrived in Portugal on 6 November and had talks with President Anibal Cavaco Silva in which they agreed to deepen the comprehensive strategic partnership between them. President Hu said that they had no conflict of fundamental interests and their peoples cherished friendly feelings towards each other. President Silva said that the successful settlement of the Macau issue had created a favourable environment for Macau's development. Hu called for greater political trust to be built up, and suggested that trade should be doubled by 2015. President Silva said that the comprehensive strategic partnership established in 2005 had been a milestone in relations. Trust was deepening and trade developing smoothly. President Hu later had meetings with Jaime Gama, President of the Portuguese Assembly, and with the Prime Minister Jose Socrates. China and Portugal signed bilateral co-operation agreements on trade and economy, telecommunications, electric power and culture, and issued a joint statement (XHNA, 7 Nov.).

Premier Wen Jiabao

Premier Wen Jiabao paid an official visit to Greece, Belgium Italy and Turkey from 2 to 9 October. He visited Greece from 2 to 4 October and had talks with the Prime Minister George Papandreou, President Karolos Papoulias and the Speaker Philippos Petsalnikos. Combined trade stood at US$40 billion in 2009. In a speech to the Greek Parliament on 3 October he said that China was ready to intensify its co-operation with Greece and help the country tide over its financial difficulties. He noted that China had signed over 20 co-operation agreements and contracts with Greece in 2010, and suggested that they seek to double their bilateral trade over the next five years. He said that the two sides would co-operate to manage the Piraeus Container Terminal and increase its capacity to 3.7 million TEUs by 2015. He told that Parliament that China supported a strong Euro and would not reduce its Euro bond holdings. In his talks with Prime Minister Papandreou, he said that China had bought and was now holding Greek Treasury bonds and would take a positive attitude to further purchase. China would also set up a special fund for shipping co-operation of US$5 billion, and would help upgrade the port of Piraeus. After the meeting they issued a joint statement on deepening their comprehensive strategic partnership (full text in XHNA, 3 Oct.) and attended the signing ceremony for 13 bilateral deals in areas including maritime transportation, loan, telecommunication, export and cultural exchanges (XHNA, 2 Oct.).

Premier Wen and his party arrived in Brussels on 4 October to pay an official visit to Belgium and to attend the ASEM Summit and the China–EU Summit. He met the Belgian King and had talks with the Prime Minister. Wen said that China was looking to develop its relations with Belgium in the fields of high-end manufacturing, biological technology, new material and agricultural products processing (XHNA, 6 Oct.). Agence France Presse reported on 7 October that a Belgian consortium, comprising a subsidiary of the French company GDF Suez, had signed a framework agreement with China on the commercial manufacture of nuclear fuel in China (AFP 7 Oct.).

Wen arrived in Rome on 6 October and had talks with Prime Minister Berlusconi the following day, and a meeting with President Giorgio Napolitano. The two sides agreed to expand co-operation in technological and industrial creativity, and to prioritize the development of renewable energies, electric automobiles, low-energy buildings, environmental protection technology education and capacity building, especially in China's western provinces. They also agreed to deepen their co-operation on environmental protection and to promote co-operation among smaller firms. They formally launched the Chinese Culture Year in Italy. They also witnessed the signing of agreements on economy, science and technology, culture and justice (XHNA, 7 Oct.).

Premier Wen and his party arrived in Turkey on 7 October. He had talks the following day with the Prime Minister, Recep Tayyip Erdogan, and witnessed the signature of eight agreements on bilateral trade and economic co-operation, co-operation in third-country infrastructure and technical consultation, cultural exchanges, co-operation in information and telecommunication technology, maritime co-operation, railway co-operation and co-operation in other fields. In a press conference following their talks, the two Prime Ministers announced that they had established a strategic co-operative relationship. Premier Wen said that they both faced threats from the “three evil forces” of terrorism, separatism and extremism, and shared common interests in safeguarding territorial integrity and sovereignty (XHNA, 8 Oct.). Trade between the two countries was over US$10 billion in 2009, with Turkey importing US$8.3 billion and exporting US$1.7 billion, and had risen from US$1 billion in 2000 to 12.6 billion in 2008. During the visit the two sides agreed to try to increase bilateral trade to US$50 billion by 2015 and US$100 billion by 2020. Premier Wen also visited Istanbul where he had talks with the Turkish President, Abdullah Gul (XHNA, 8 Oct.).

Premier Wen Jiabao paid official visits to Russia and Tajikistan from 22 to 25 November, and attended the 15th Chinese–Russian Prime Ministers' meeting and the ninth Prime Ministers' meeting of the Shanghai Cooperation Organization (SCO). On arrival in St Petersburg, he said that developing a long-term healthy and steady strategic partnership of co-ordination was in the interests of both countries. He met the Russian Prime Minister, Vladimir Putin, and told him that he wished to inject new vigour into the comprehensive deepening of the Sino-Russian strategic partnership of co-ordination. During his visit Wen and the Russian leaders reviewed their comprehensive bilateral co-operation over the past year and determined the priorities in the next phase of their practical co-operation. Wen noted that the two sides had deepened their political mutual trust and strategic mutual trust, made obvious progress in co-operation in trade, energy, finance and cultural fields, and strengthened strategic co-ordination. The two Prime Ministers witnessed the signing of a number of agreements in such sectors as trade, high-tech, energy, agriculture, finance. Bilateral trade was US$45.1 billion in the first ten months of the year, an increase of 45 per cent from the previous year (XHNA, 23 Nov.). He met President Medvedev on 24 November (XHNA, 24 Nov.).

Premier Wen arrived in Tajikistan on 24 November. Premier Wen met the Tajik President Emomali Rahmon on 25 November. Wen described Tajikistan as one China's important co-operation partners in Central Asia. They agreed to step up mutual political trust and promote substantial bilateral economic co-operation to a higher level. They noted that the two countries have also carried out close co-operation in the areas of economics and trade, telecommunications, mining, transportation, electricity, agriculture, infrastructure, education and culture, boosting the two countries' economic and social development. Premier Wen also had talks with the Tajik Prime Minister. At the end of the visit the two sides issued a joint communiqué. Bilateral trade in the first ten months of the year was worth US$1.08 billion, an increase of 2.5 per cent (XHNA, 25 Nov.).

Premier Wen also attended the ninth Prime Ministers' meeting of the SCO Summit. In the margins he met Prime Minister Masimov of Kazakhstan. Premier Wen said that the two sides should continue to secure and expand their co-operation in energy; ensure the safe, stable and highly efficient operation of China–Kazakhstan crude oil pipelines; lose no time in implementing a number of representational co-operation projects in the sector of non-resources; boost pragmatic co-operation in the spheres of high technology, infrastructure and agriculture; and jointly promote the construction of an international border co-operation centre (XHNA, 24 Nov.). He put forward a six-point proposal for enhancing practical co-operation in the SCO. He said that safeguarding regional security, stability and harmony was of vital importance, and that the SCO should set up, step by step, a permanent and effective mechanism to safeguard regional security and stability, and to take joint actions and comprehensive measures to deal persistent, heavier and more effective blows to the “three evil forces” of extremism, separatism and terrorism as well as drug trafficking and transnational organized crimes (XHNA, 25 Nov.).

Premier Wen paid a state visit to India and Pakistan from 15 to 19 December. In advance of the visit to India, the Chinese ambassador to India said that China's relations with India were “very fragile” and needed special care and guidance, and added that it was important to avoid a war of words (Press Trust of India, 13 Dec.). A Xinhua scene setter noted that China had high expectations of the visit. The Assistant Foreign Minister, Hu Zhengyue, said that “China–India relations are significant. The leaders of both nations agree the world has sufficient space for the two emerging economies to grow.” According to Chinese statistics bilateral trade rose from US$18.7 billion in 2005 to US$51.8 billion in 2008, and was expected to hit US$60 billion in 2010. Trade contracts worth US$16 billion were signed during the visit (XHNA, 13 and 17 Dec.). Premier Wen arrived in New Delhi on 15 November, and played up the strength of the relationship. In an address to a bilateral business forum he said that

He met the Prime Minister Manmohan Singh on 16 December. Prior to the meeting he told reporters that he hoped that his visit would strengthen bilateral co-operation and lift bilateral ties to a new height. In the meeting, they had “in-depth, frank and sincere talks on bilateral relations and important international issues and reached extensive consensuses.” They reaffirmed their commitment to promote bilateral relations. Prime Minister Singh said that the Tibet Autonomous Region is a part of the Chinese territory, and that the Indian government does not allow anyone to carry out anti-Chinese activities on its land. Premier Wen expressed his appreciation for India's stand and hoped that the Indian side would adhere to the correct position on this issue (XHNA, 16 Dec.). According to Indian sources, Premier Wen said that Indian and Chinese official should have in-depth talks on the visa issue (the Chinese practice of stapling visas into passports of people from Jammu and Kashmir). After the meeting they witnessed the signing of six agreements on green technology, the exchange of hydrological data on common rivers, media exchanges and cultural exchanges (Press Trust of India, 16 Dec.).

The Joint Communiqué issued after the Prime Ministers' meeting announced that the two sides had agreed to regularize their exchanges of high-level visits reflecting their strategic and co-operative partnership for peace and prosperity. A telephone hotline was agreed and annual visits between foreign ministers. They agreed to establish a strategic economic dialogue mechanism and a China–India CEO's forum. They announced the target of increasing bilateral trade to US$100 billion by 2015, and called for co-operation in education, banking, infrastructure construction, environmental protection and information technology. They agreed to resolve outstanding differences on the border at an early date, and a working mechanism for consultation was set up. Indian press comment noted that there had been little progress on the key Indian concerns of the visa issue and terrorism from Pakistan, neither of which was mentioned in the communiqué. China did express guarded support for India's aspirations for a seat on the UN Security Council (XHNA and Press Trust of India, 16 Dec.). Premier Wen met the Indian Vice President and Speaker of the Rajya Sabha, Ansari, on 16 December. He met Sonia Gandhi, President of the Indian National Congress, and agreed to have more exchanges at party level. He met President Patil on 16 December and said that China was willing to work with India, proceed from a strategic and long-term perspective, make joint efforts to inherit the past and look forward to the future, promote exchanges and co-operation between the two countries in the fields of politics, economy, science, technology, and culture towards more fruitful results, and achieve common prosperity (XHNA, 16 Dec.).

Premier Wen arrived in Pakistan on 17 December, and said that “the purpose of my visit this time is to solidify friendship, deepen co-operation, support Pakistan's efforts of post-disaster reconstruction, and ring in, together with Pakistan, the 60th anniversary of China–Pakistan diplomatic relations in 2011.” A Xinhua scene setter spoke of the “all weather” friendship between China and Pakistan (XHNA, 17 Dec.). Wen had talks with the Prime Minister, Syed Yusuf Raza Gillani, and they agreed to strengthen further the bilateral strategic co-operative partnership and their “evergreen” ties. They had friendly, candid and in-depth exchanges of views on bilateral relations, the regional situation and major international issues, and reached an extensive consensus. Wen said that China highly appreciated Pakistan's long-term strong support on issues related to China's core interests and major concerns. It would, as always, support Pakistan's efforts to safeguard national sovereignty and social stability and achieve economic independence and sustainable development. After the talks, they witnessed the signature of 13 agreements on co-operation in economy, energy, banking, security and technology, and China undertook to give a grant of US$229 million to help with reconstruction after the floods, and a soft loan of US$400 million (details in Associated Press of Pakistan report, 17 Dec.). Premier Wen met senior Pakistani military leaders on 18 December and called for enhanced military exchanges and co-operation. He also met President Asif Ali Zardari, and addressed the China Pakistan Business Council where he announced that the two sides had signed trade deals worth US$10 billion (XHNA, 18 Dec.). On 19 December, he addressed the Pakistani parliament on the topic of “Shaping the Future Together Through Thick and Thin,” and said that “to cement and advance the all-weather strategic partnership of co-operation between China and Pakistan is our common strategic choice” (XHNA, 19 Dec.). A Joint communiqué was issued at the end of Wen's visit (full text in XHNA, 19 Dec.).

Vice President Xi Jinping

Vice President Xi Jinping visited Singapore, South Africa, Angola and Botswana from 14 to 24 November. During his stay in Singapore from 14 to 16 November, Xi had talks with Singapore President Sellapan Ramanathan, Prime Minister Lee Hsien Loong, Senior Minister Goh Chok Tong, Minister Mentor Lee Kuan Yew and other leaders (XHNA, 14 Nov.). He then went to South Africa from 17 to 19 November where he met President Zuma, and the Speaker of the South African National Assembly, Max Sisulu on 17 November. He later co-hosted the 4^th Plenum of the China South Africa Bi-National Commission. Xi said that two countries should increase their co-operation in sectors such as science and technology, education, culture and tourism, under their comprehensive strategic partnership. The two sides signed a number of agreements covering co-operation in public welfare, energy, trade statistics analysis and banking supervision (XHNA, 17 Nov.). Xi visited Botswana from 20 to 22 November and had meetings with President Ian Khama and Vice President Mompati Meraghe. Trade between the two countries had peaked at US$360 million in 2008, and in the first eight months of 2010 was US$179 million (XHNA, 19 Nov.). During his visit three agreements were signed on economic and technical co-operation, infrastructure and energy development, and finance (XHNA, 20 Nov.). He visited Angola on 19 and 20 November, and following meetings with President Jose Eduardo do Santos and Vice President Fernando da Piedade, it was announced in a joint communiqué (text in XHNA, 20 Nov.) that China and Angola had established a strategic partnership. On his way home, he stopped over in Mallorca and met the Spanish Foreign Minister Trinidad Jimenez. She told him that Spain was ready to further promote co-operation with China and continue to work for better EU–China ties and the EU's early lifting of the arms embargo against China (XHNA, 23 Nov.)

Other senior leaders

Jia Qinglin, Chairman of the National Committee of the Chinese People's Political Consultative Conference paid official goodwill visits to Syria, Poland, Oman and Kazakhstan from 29 October to 11 November (XHNA, 29 Oct.).

Wu Bangguo, Chairman of the NPCSC, visited Cambodia, Indonesia and Thailand from 3 to 13 November (XHNA, 31 Oct.).

Americas (Bahamas, Canada, Chile, Costa Rica)

The Prime Minister of Bahamas, Michael Ingraham, and the President of the Senate and Speaker of the House of Assembly visited China in October. Prime Minister Ingraham had meetings with Wu Bangguo, Chairman of the NPCSC, on 26 October, and with Vice Premier Li Keqiang on 27 October (XHNA, 27 Oct.). Premier Wen Jiabao met the Prime Minister in Shanghai on 31 October and said that China would like to help the Bahamas improve its ability for self-development and deepen co-operation in infrastructure, finance, tourism, agriculture and new energy (XHNA, 31 Oct.).

The Foreign Minister of Canada, Lawrence Cannon, visited China from 19 to 23 October. He met Foreign Minister Yang Jiechi on 22 October. Yang spoke of the strategic partnership between the two countries and said that China wanted to promote the long-term, healthy, and stable development of relations. Cannon noted that Canada wanted to develop co-operation in the fields of economy, trade, energy resources, environmental protection, tourism, health care, and humanities. Foreign Minister Cannon also met Vice Premier Li Keqiang. (XHNA, 22 Oct.).

The President of Chile, Sebastian Pinera, paid a state visit to China from 15 to 17 November. He had talks with President Hu Jintao on 16 November. The two leaders then witnessed the signature of three agreements on economic co-operation. President Hu spoke of their comprehensive co-operative partnership established in 2004 and suggested expanding co-operation in areas like agriculture, science and technology, mineral development, light industry, household appliances and machinery. President Pinera also met Wen Jiabao and Wu Bangguo on 17 November. Chile is China's second largest trade partner in Latin America and trade in 2009 was US$17.72 billion (XHNA, 16 and 17 Nov.).

The Costa Rican Foreign Minister, Rene Castro, visited China from 24 to 31 October, and had talks with Yang Jiechi on 25 October. Yang said that China attached great importance to bilateral relations and that they had much improved under the new government (XHNA, 25 Oct.).

Australasia (Antarctica, Australia, Fiji, East Timor)

State Councillor Liu Yandong visited Antarctica in December. Speaking on King George Island where she was visiting the Chinese Great Wall Station, she said that China attached great importance to polar research and would continue co-operating with other parties to conduct peaceful polar explorations. As a consultative member of the Antarctic Treaty, China was committed as always to performing scientific research within the framework of the treaty and broadening international co-operation in order to effectively preserve the Antarctic ecological environment, guarantee the peaceful theme of polar research and protect the common benefit of mankind (XHNA, 27 Dec.).

The Australian Foreign Minister, Kevin Rudd, visited China in November. He had talks with the Chief of the PLA General Staff Department, Chen Bingde, on 4 November. The Australian Deputy Prime Minister and Treasury Minister, Wayne Swan, was also visiting China in November and met Vice Premier Li Keqiang on 4 November. Swan said Australia hoped to enhance co-operation in trade, energy and resources, tourism and culture (XHNA, 4 Nov.).

Premier Wen Jiabao met the President of East Timor, Xanana Gusmao, on 31 October in Shanghai. He said that China cherished its friendship with East Timor and suggested they expand co-operation in agriculture, oil and gas exploration, mining and investment (XHNA, 31 Oct.).

The President of Fiji, Epeli Nailatikau, visited Shanghai for the World Expo and had a meeting with Wu Bangguo on 2 October (XHNA, 2 Oct.). The Minister for Foreign Affairs, Civil Aviation and International Co-operation, Ratu Inoke Kubuabola, visited China from 11 to 14 October. He was received by Foreign Minister Yang Jiechi. Yang said that China attached importance to its co-operation with Fiji. Kubuabola said that Fiji would strengthen ties with China in the areas of economics, trade, tourism, culture and education (XHNA, 13 Oct.). He met Vice President Xi Jinping the following day (XHNA, 14 Oct.). The Fijian Prime Minister, Vorege Bainimarama, visited Zhejiang province in November to discuss trade and investment opportunities (Fijilive website, Suva, 15 Nov.).

Central Asia (Kazakhstan)

The Foreign Minister, Yang Jiechi, visited Kazakhstan from 27 to 29 December. He met the Kazakh Foreign Minister, Kanat Saudabayev, on 28 December and they exchanged views on key issues of bilateral relations, international and regional security, as well as stressing the strategic nature of their co-operation (Kazinform News Agency, in Russian, 28 Dec.). He met President Nazarbayev on 28 December. Yang said that the Chinese government highly valued its relations with Kazakhstan and regarded it as one of its diplomatic priorities. He noted that China was willing to foster the relations with Kazakhstan to be a model of good neighbourliness and equal co-operation, and a guarantee for both countries' development (XHNA, 28 Dec.). He also had talks with Prime Minister Karim Masimov and they agreed to deepen their co-operation in energy, infrastructure and non-resource areas (transport infrastructure, trade and finance) (XHNA, 28 Dec.).

Europe (EU, Cyprus, Denmark, Italy, Turkey, Russia, United Kingdom)

China and the EU held their third High-Level Economic and Trade Dialogue in Beijing on 21 December. Vice Premier Wang Qishan led for China, and the EU side was led by the European Commission Vice-President in Charge of Competition Policy, Joaquin Almunia, Trade Commissioner Karel De Gucht as well as Commissioner for Economic and Monetary Affairs Olli Rehn. The meeting covered macro-economic challenges facing the international economy, competition questions as well as trade, investment, innovation and customs co-operation. Wang Qishan said that China supported the measures being taken by the EU and the IMF to create financial stability, and noted that China had taken concrete action to help some EU members combat the sovereign debt crisis. Wang called on the EU to make substantial headway in relaxing the restrictions on its export of high-tech products to China, and urged it to accord China Market Economy status as soon as possible. Trade with the EU in the first 11 months of the year was US$433.9 billion, up 33 per cent (XHNA, 21 Dec.).

The Foreign Minister of Cyprus, Markos Kyprianou, visited China from 17 to 19 October. He met Vice Premier Li Keqiang on 20 October. Li said that China and Cyprus were friends and good partners seeking joint development. He also had talks with Foreign Minister Yang Jiechi (XHNA, 20 Oct.).

Yang Jiechi met the Danish Deputy Prime Minister and Foreign Minister, Lene Espersen, in Shanghai on 31 October. Ms Espersen welcomed the two countries' co-operation in education, research and development and renewable energy and environmental protection (XHNA, 31 Oct.).

The Turkish Foreign Minister, Ahmet Davutoglu visited China from 28 October to 2 November. He began the visit in Kashgar, and then travelled on to Urumqi, Xi'an, Shanghai and Beijing. He met Vice President Xi Jinping on 1 November, and the two sides committed themselves to joint efforts to crack down on terrorism and separatism. Xi thanked Turkey for its efforts in combating “East Turkestan” terrorist forces (XHNA, 1 Nov.). He met Foreign Minister Yang Jiechi on 2 November. Yang said China hoped to enrich their strategic co-operation and take it forward in politics, economy, security, culture and people-to-people exchanges (XHNA, 2 Nov.).

The British Prime Minister, David Cameron, visited China from 9 to 11 November, accompanied by a high-level delegation of four senior ministers and 50 top businessmen, for discussions on a wide range of topics including trade, finance, energy and education. The visit was preceded by the Third UK–China Economic and Financial Dialogue led by the Chancellor of the Exchequer and Vice Premier Wang Qishan in Beijing on 9 November (XHNA, 9 Nov.). Prime Minister Cameron had talks with Premier Wen Jiabao on 9 November. Wen noted that China and Britain were comprehensive strategic partners. They should strengthen political trust and promote the fundamental interests of both countries. China welcomed British enterprises expanding their co-operation with China, particularly in high-end manufacturing, aviation, aerospace, innovation industries, the financial industry, the service industry, energy saving, environmental protection and other fields. Wen said that China encouraged Chinese enterprises to increase investment in Britain. He hoped that the two countries would continue to conduct rich and colourful activities in education, culture, healthcare, exchanges between teenagers, the Olympic Games and other areas, and enhance mutual understanding and friendship between the Chinese and British people. David Cameron replied that Britain valued its comprehensive strategic partnership with China, had persistently pursued the one-China policy and was ready to strengthen exchanges and enhance mutual trust on the basis of mutual respect and through important bilateral dialogue mechanisms. Britain wanted a trade and economic partnership that promoted common growth and welcomed Chinese investment in the UK. The two leaders also discussed important regional and international issues. After the talks, they witnessed the signing of documents on bilateral co-operation (XHNA, 9 Nov.). Prime Minister Cameron met President Hu on 10 November. Hu told him that co-operation was stronger than competition between the two countries. He said that he hoped that the two countries could make good use of the developmental opportunities that beckoned. Prime Minister Cameron said that they should expand co-operation in energy, environment and pharmaceutics. He agreed with Hu to fight against protectionism and push forward the Doha round of talks. During the visit several commercial deals were signed with contracts worth US$2.7 billion. Trade reached US$357.5 billion in the first nine months of the year, a rise of 29.4 per cent. During the visit, the two sides also held high-level dialogues on finance, education and energy. Prime Minister Cameron attended a China-UK Business Summit along with Vice Premier Li Keqiang (XHNA, 10 Nov.).

Japan

Relations with Japan remained difficult with the fall out from the Diaoyutai/Senkaku Islands dispute. Premier Wen Jiabao had a meeting with the Japanese Prime Minister, Naoto Kan, in the margins of the ASEM in Brussels on 4 October, with the Diaoyutai/Senkaku issue being a major item of discussion. Premier Wen reiterated the Chinese position that the islands had been Chinese territory since ancient times. They agreed to increase people-to-people exchanges and to hold a high-level meeting at an appropriate time (XHNA, 5 Oct.; Kyodo News Agency, 4 Oct.).

It was announced that the Japanese had cancelled a proposed ship visit to Qingdao by two ships of the Maritime Self-Defence Force after the Japanese were told that it should be postponed because of the ill feeling generated by the Diaoyutai/Senkaku incident (Kyodo News Service, 14 Oct.). On 16 October demonstrations took place in a number of Chinese cities, including Xi'an, Chengdu, Hangzhou and Zhengzhou, to defend China's position on the Diaoyutai Islands and to protest against Japan's actions (XHNA, 16 Oct.). There were also protests outside the Chinese Embassy in Tokyo. The Chinese Foreign Ministry spokesman expressed “deep concern” at these and urged Japan to fulfil its obligations under the Vienna convention and to properly protect the Embassy. He said that the demonstrations in China were “understandable” but that patriotism should be expressed rationally and in compliance with the law (XHNA, 16 Oct.). Further sporadic demonstrations continued throughout October, with protests in Sichuan, Shaanxi and Gansu on 24 October (Kyodo News Service 24 Oct.), and in Chongqing on 26 October (XHNA, 26 Oct.).

On 19 October China expressed itself “deeply shocked” at remarks made by the Japanese Foreign Minister, Seiji Maehara, when he described the Chinese reaction to the “ship collision” incident as “hysterical.” The Foreign Ministry spokesman said that the remarks ran counter to attempts to improve relations and that the Chinese hoped the Japanese would show sincerity in improving the two countries' relations with practical moves, so as to create necessary conditions and environment to realize meetings between the two countries' leaders at the forthcoming ASEAN meetings. Assistant Foreign Minister Hu Zhengyue said on 21 October that that it required appropriate conditions and an atmosphere for Chinese and Japanese leaders to meet. “We hope that the Japanese and Chinese sides will move towards each other and show their sincerity in improving the two countries' relations with actual deeds, instead of saying something contradictory to this or doing something that runs counter to this.” He claimed that China had acted with restraint over the ship incident, but that the Japanese had deliberately escalated it, which forced China to take “some appropriate and necessary responses.” He also complained about remarks made by the Japanese Prime Minister on 15 October when he had said that there was no hurry for a high-level meeting and that the ball was in China's court (ZXS, 21 Oct.).

The Japanese and Chinese Foreign Ministers met in the margins of ASEAN + 3 meetings in Hanoi on 29 October. Japanese press reports of the meeting (Kyodo News Service, 29 Oct.) suggested that they had agreed to improve ties and possibly to prepare the ground for a meeting between the Prime Ministers. The Japanese Foreign Minister said he had reiterated Japan's firm position on the disputed islands and that the Chinese had responded with theirs. The meeting had taken place in an “extremely congenial atmosphere.” However, shortly afterwards the Chinese expressed anger over the meeting, claiming that the Japanese had made untrue statements about it, distorted China's position, and were trying to stir up resentment against China over the islands issue, and had ruined the atmosphere for talks between the leaders. China was further upset by the US Secretary of State saying, following her meeting with the Japanese Foreign Minister, that the Diaoyutai Islands fell within the scope of the US Japan Security Treaty (XHNA, 29 Oct.).

Tensions remained even after President Hu did eventually have a meeting with the Japanese Prime Minister in the margins of the APEC Summit in Yokohama on 13 November. Hu said that both sides should proceed from a strategic perspective and a long-term angle, strictly observe the principles laid down by the four political documents between China and Japan, hold firm to the correct development direction of China–Japan relations, make efforts to push forward China–Japan strategic reciprocal relations along a healthy and stable track. Prime Minister Kan was reported by the Chinese to have fully agreed with Hu Jintao on his opinions regarding the development of China–Japan relations. He hoped that both sides would strengthen exchanges and co-operation in various fields and push for further improvement and development of the two countries' relations (XHNA, 13 Nov.). After the Summit the two Foreign Ministers met and agreed to “implement the important consensus reached by the Chinese and Japanese leaders, firmly grasp the right direction for the development of Sino-Japanese relations, and preserve the overall situation of bilateral relations. Both sides maintained they would adopt positive measures to enhance people's feelings, promote practical co-operation, and push forward the improvement and development of Sino-Japanese relations” (XHNA, 13 Nov.). By 16 December relations were showing signs of improvement and the Chinese Foreign Ministry Spokeswoman said that the many meetings and contacts leaders had made at multilateral occasions had allowed them to reach important consensuses. She said China was willing to work with Japan to promote the mutual strategic relationship to new heights. Both sides should act in accordance with the principles of the four political documents (China–Japan Joint Statement on Comprehensively Advancing Strategic and Reciprocal Relations, the Sino-Japanese Joint Statement, the China–Japan Treaty of Peace and Friendship and the Sino-Japanese Joint Declaration) (XHNA, 16 Dec.).

Koreas

There was a busy round of bilateral exchanges between China and North Korea. A senior North Korean delegation led by Choe Thae Bok, a member of the Politburo, visited China at the beginning of October to inform the Chinese leadership of the outcome of the meeting of the Korean Worker's Party held at the end of September. Liu Yunshan, Head of the Propaganda Department, congratulated the Koreans on the outcome of the conference and said that China stood ready to work with the new leadership to develop bilateral ties, realise more benefits for the two peoples and more contributions to lasting regional peace and common prosperity (XHNA, 1 Oct.). The delegation met President Hu Jintao on 2 October. President Hu said that the Congress had been a major event in the political life of North Korea and promised that the CCP would: “actively promote and expand exchanges and co-operation in various fields, strengthen communication and co-ordination in regional and international affairs, and make common efforts in helping maintain regional peace and stability and promoting joint development.” He made no public direct mention of the elevation of Kim Jong Un. A Xinhua commentary of 30 September noted that

A Chinese delegation led by Zhou Yongkang, the Politburo Standing Committee member in charge of security issues, visited North Korea from 9 to 11 October to attend the celebrations of the 65th anniversary of the founding of the Korean Workers Party. Zhou met Kim Yong Nam, President of the Supreme People's Assembly on 9 October, and was with Kim Jong Il and Kim Jong Un for the grand military parade and other festivities in Pyongyang on 10 October (XHNA, 10 Oct.). He had a formal meeting with Kim Jong Il on 11 October. Kim said that he was very satisfied with the healthy state of relations with China, and that he and President Hu had reached important consensus on the crucial issues between them as well as on other issues of mutual concern. Zhou said that the close relationship between the two leaders showed that China and North Korea were intimate comrades and true friends (XHNA, 11 Oct.).

A delegation of senior Chinese military officers, led by Guo Boxiong, Vice Chairman of the Military commission, visited North Korea for the 60th anniversary of the entry of the Chinese People's Volunteers into the Korean War on 25 October (XHNA, 23 Oct.). They were received by Kim Jong Il who hosted a special banquet for them. Kim Jong Un was also present (XHNA, 25 Oct.). In China President Hu and Vice President Xi Jinping met veterans of the Chinese People's Volunteers. Xi said that the Chinese action had been “a great and just war for safeguarding peace and resisting aggression” (text of his speech in XHNA, 25 Oct.).

The Premier of North Korea, Choe Yong Rim paid an unofficial working visit to northern China and met Vice Premier Zhang Dejiang in Changchun on 3 November (KCNA 3 Nov.).

Relations with South Korea were also busy, although there were difficulties over the North Korean issue and South Korea's military relationship with the US. Premier Wen Jiabao met the South Korean President Lee Myung-bak in the margins of the ASEM meeting in Brussels on 5 October and they agreed to boost co-operation and communication to accomplish the common goal of denuclearizing North Korea and bringing lasting peace to Northeast Asia. Premier Wen said that China looked for an early resumption of the six-party talks to ease tensions and resolve the nuclear issue. He said that the forthcoming G20 Summit in Seoul would be of great significance and promised that China would support South Korea in seeking positive outcomes from the meeting (XHNA, 5 Oct.). The Chinese and South Korean Foreign Ministers met in the margins of the Hanoi meetings on 28 October (XHNA, 28 Oct.). The Chinese Foreign Minister, Yang Jiechi, had planned to visit South Korea from 26 to 27 October but the visit was called off as tensions rose on the peninsula. South Korea opened a consulate in Wuhan, covering the provinces of Hubei, Hunan, Henan and Jiangxi, on 25 October (XHNA, 25 Oct.).

China continued to press for resumption of the six-party talks, through a number of contacts during the period. North Korea's chief negotiator on the nuclear issue, Kim Kye Gwan, who had recently been promoted to Vice Foreign Minister, visited Beijing from 12 October at the invitation of China's special representative for Korean affairs, Wu Dawei. He had talks with Foreign Minister Yang Jiechi, and was reported to have had candid and thorough discussions (XHNA, 14 Oct.).

The North Korea nuclear issue took a further twist when the North Koreans revealed to a visiting American scientist that it was operating 2,000 centrifuges capable of producing highly enriched uranium. Tensions were further raised when North Korean artillery shelled the island of Yeongpyeong. The Chinese Ministry of Foreign Affairs expressed concern over the shelling, although in a restrained way. The spokesman said: “We are concerned about the issue and the real situation needs to be confirmed.” He went on to restate China's position that all relevant parties should create conditions for resuming the six-party talks and that they restart at the earliest possible date (XHNA, 23 Nov.). This followed a meeting the previous day between China's representative for the Korean peninsula, Wu Dawei, and Wi Sung-lac, South Korea's special representative for Korean Peninsula Peace and Security. It was also announced that Stephen Bosworth, the US special representative for North Korean policy, would be visiting China on 23 and 24 November following visits to South Korea and Japan. Speaking in Russia, Premier Wen Jiabao said that all parties should exercise maximum restraint and the international community should make more efforts to ease tensions. Restarting the six party talks was an essential way to achieve stability and denuclearization on the peninsula (XHNA, 24 Nov.). The Chinese Foreign Minister, Yang Jiechi, had planned to visit to South Korea from 26 to 27 but the visit was called off as tensions rose, although the Chinese Foreign Ministry cited scheduling problems (XHNA, 25 Nov.). Meanwhile the Foreign Ministry again called for calm and restraint, and urged the two Koreas to engage in dialogue and refrain from similar actions. It repeated the urgency of restarting the six-party talks. It also noted its concern at the proposed military exercise by the US and South Korea on 28 November. On the question of uranium enrichment, the MFA spokesman said

He also noted its concern at the proposed military exercise by the US and South Korea on 28 November (XHNA, 25 Nov.). He repeated these concerns on 26 November saying that China was opposed to any party taking military actions in China's exclusive economic zone without permission (XHNA, 26 Nov.). Foreign Minister Yang Jiechi met the South Korean Ambassador on 26 November, and also had a telephone conversation with US Secretary of State, Hillary Clinton, and reiterated China's position (XHNA, 26 Nov.). State Councillor Dai Bingguo, accompanied by China's chief nuclear negotiator, Wu Dawei, visited South and North Korea from 27 November. He had talks with the South Korean Foreign Minister, Kim Sung-hwan, and with President Lee Myung-bak who asked China to act “fairly and responsibly” to contribute to bringing peace to the peninsula (Yonhap News Agency, 28 Nov.). On 28 November, Wu Dawei announced that China was proposing emergency consultations among heads of the delegations to the six-party talks: “The Chinese side, after careful studies, proposes to have emergency consultations among the heads of delegation to the six-party talks in early December in Beijing to exchange views on major issues of concern to the parties at present” (XHNA, 28 Nov.). On 6 December President Hu Jintao spoke on the telephone to President Obama about the Korean situation. Hu said that

He added that “the denuclearization of the peninsula, the peaceful resolution of the nuclear issue of the Korean Peninsula through dialogue and talks, and the maintenance of the peace and stability on the Korean Peninsula and in Northeast Asia are the Chinese side's consistent position, which are also the starting point and ultimate goal of the Chinese side's handling the Korean Peninsula nuclear issue and other relevant issues” (XHNA, 6 Dec.). On the North Korean side, the Chairman of the North Korea Supreme People's Assembly, Choe Tae Bok, visited China from 30 November to 4 December. State Councillor Dai Bingguo, accompanied by Wu Dawei, visited North Korea on 8 and 9 December and was received by Kim Jong Il on 9 December (XHNA, 9 Dec.). State Councillor Dai Bingguo met the US Deputy Secretary of State, James Steinberg, on 16 December for talks on the peninsula (XHNA, 16 Dec.). The UN Security Council held an emergency meeting on North Korea on 19 December, but it failed to agree a statement. According to the South Korean press this was because China was refusing to denounce the North Korean shelling on Yeonpyeong Island (Yonhap, 19 Dec.). The Chinese said that they had made intensive diplomatic efforts and hoped everyone involved would work with China for the same goal. The Chinese representative at the UN said that China was deeply worried at the situation (XHNA, 20 Dec.).

Middle East (Iraq, UAE)

China's permanent representative to the UN said that China supported the new UN resolutions on lifting major sanctions against Iraq. “China welcomes the adoption by the Security Council of resolutions which lift the sanctions imposed according to Chapter 7 of the Charter regarding the mass destructive weapons, missiles and civilian nuclear activities, which conclude the oil-for-food programme and provide for appropriate arrangements relating to the development fund for Iraq.” He commended the Iraqi government for stabilizing the overall situation, and said that: “We understand and support Iraq's aspiration for complete reintegration into the international community” (XHNA, 15 Dec.).

The UAE Minister of Foreign Affairs, Shaykh Abdullah Bin Zayed Al Nahyan, visited China in October and met Foreign Minister Yang Jiechi on 21 October. Yang said that China attached great importance to its all-round friendly and co-operative relations with the UAE and wanted to expand co-operation in fields such as trade, energy, rail and international flights. Shaykh Abdullah expressed the hope of upgrading their relations to the level of strategic partnership. He met Vice President Xi Jinping on 23 October (XHNA, 21 and 23 Oct.).

South Asia (India, Nepal, Pakistan)

Zhou Yongkang, a member of the Politburo Standing Committee and Secretary of the Commission for Political and Legal Affairs, visited India in late October/early November. He had a meeting with the Indian Prime Minister, Manmohan Singh, on 1 November and said that China wished to increase political trust with India and expand co-operation for mutual benefit and deepen their strategic co-operative partnership. He also met Sonia Gandhi, President of the Congress Party, and Secretary General Rahul Gandhi, the Minister for External Affairs, and other political leaders. He made a five-point proposal on the further development of China–India relations, including promoting political mutual trust, expanding co-operation in economics and trade, boosting friendly exchanges, strengthening international co-operation, and promoting friendly consultation. Trade is expected to reach US$60 billion in 2010 (XHNA, 3 Nov.). China and India held a meeting in Beijing on border issues from 29 to 30 November, led by State Councillor Dai Bingguo and National Security Adviser Shivshankar Menon. They agreed to continue to “seek a fair and reasonable solution acceptable to both sides,” but no substantive progress was reported. They also discussed the wider bilateral relationship. Vice President Xi Jinping received Menon after the talks and said that the two countries were co-operative partners, not competitors (XHNA, 30 Nov.).

The President of Nepal, Dr Ram Baran Yadav, visited China from 21 October to 2 November to attend the closing of the Shanghai World Expo. He first travelled via Tibet. Premier Wen Jiabao met him in Shanghai on 31 October. He described China and Nepal as good neighbours, good friends and good partners, and said that their relationship was a model of friendly and equal co-operation. China would consolidate its traditional friendship with Nepal and enrich its comprehensive partnership (XHNA, 31 Oct.).

President Asif Ali Zardari visited China from 11 November. His first stop was in Guangzhou for the opening of the Asian Games. He met Premier Wen Jiabao in Guangzhou on 12 November. Wen expressed deep sympathy for the floods and said China would give its full support to post-disaster reconstruction. Zardari hoped the two countries could cement co-operation in areas like agriculture, irrigation and infrastructure and enhance co-ordination in international and regional affairs to safeguard interests of both countries (XHNA, 12 Nov.).

South East Asia (Burma, Cambodia)

The Chinese Foreign Ministry spokesman said on 9 November that China welcomed the smooth general election that had just taken place in Burma. It was a vital part of the seven-step roadmap to the transition to an elected government (XHNA, 9 Nov.). A more detailed press commentary said that the change came out of the military's own choice and conforms to people's aspiration and the international trend and fundamental condition that speeds up the country's national economic and social development. It concluded that “Myanmar still must meet many challenges. But there is one point that can be assured, that is Myanmar society is heading for pluralism and democratization with the inevitable emergence of complicated phenomena of joint existence of various political forces dominated by the main political force” (XHNA, 9 Nov.).

Hun Sen, Prime Minister of Cambodia, visited China from 13 to 17 December. He had meetings with President Hu Jintao and with Wu Bangguo, Chairman of the NPCSC. He had talks with Premier Wen Jiabao, at which they agreed to establish a comprehensive strategic partnership of co-operation. Wen said the government would encourage Chinese companies to increase investment in Cambodia and help in its construction of special economic zones. China would look to expand co-operation with Cambodia in areas including agriculture, infrastructure construction, finance and human resources, and continue to provide assistance. They agreed to increase trade to US$2.5 billion by 2015. In the first half of the year bilateral trade was worth US$627 million (XHNA, 13 Dec.).

Taiwan

In important elections on 27 November, the ruling Kuomintang held on to three mayoral positions in Taipei city, Xinbei City and Taichung city while experiencing an overall fall in its vote to the opposition DPP with 44.54 per cent compared to 49.87 per cent). The DPP won easily in the southern towns of Kaohsiung and Tainan. The elections were widely seen as a test of the current government as they covered roughly 60 per cent of the total population (CNA, 27 Nov.). China commented that it had paid “close attention” to the results and would continue working with Taiwan to expand and deepen cross-Strait relations (XHNA, 28 Nov.). President Ma claimed that the results showed that the KMT's reforms had borne fruit. He said that cross-Strait relations had not been an election issue and that the government would not change its policy in this regard or alter its progress (CNA, 29 Nov.).

A further round of the cross-Strait talks was held in Taipei from 20 to 22 December, and a medical and health co-operation agreement was signed. Chen Yunlin, President of the Association for Relations across the Taiwan Strait (ARATS), had talks with Chiang Pin-kung, head of the Straits Exchange Foundation (SEF). Before the talks, Chiang was reported to have said that the exchanges had reached a tenuous and difficult stage. There were still differences on investment protection (Taipei Times website, 18 Dec.). The Chinese party arrived on 20 December for talks on 21 December. They signed the medical and healthcare agreement on the afternoon of 21 December, which included provision for swift reporting by both sides on emergency situations. They were unable to complete work on the investment agreement (XHNA, 21 Dec.). Wang Cho-chiun, the Director General of the Taiwan Police Agency, visited China from 26 October to 1 November under the “Agreement on Cross-Strait Mutual Assistance in Cracking Down on Crime” which was signed in April 2009. This was the first senior police officer to visit the mainland and followed a visit by a Vice Minister of Public Security to Taiwan in September (XHNA, 27 Oct.). China approved the applications of two more Taiwanese banks to open branches on the mainland: the Cathay United Bank in Shanghai and the Hua Nan Bank in Shenzhen. The Taiwan Business Bank was also allowed to open a representative office in Shanghai. This followed permission for two Taiwanese banks to open in September (XHNA, 13 Oct.). The Bank of China opened its office in Taipei on 25 October (CNA 25 Oct.). Five further Taiwanese banks were granted permission to operate Chinese branches on 18 December (Taipei Times website, 18 Dec.).

A row blew up over the insistence by a Chinese delegation to the Tokyo International Film Festival that the Taiwanese delegation could only participate under the name “Taiwan, China” or “Chinese Taipei” rather than Taiwan, which it always used previously. Taiwanese politicians described the behaviour as “overbearing.” The Chinese tried to play it down. The Chinese Ministry of Foreign Affairs spokesman said that the Ministry was aware of the issue, but that as far as Taiwan's participation in international events was concerned, “both sides should make reasonable arrangements through bilateral co-ordination so long as they are made under the premise of not creating two Chinas or one China, one Taiwan” (CNA, 25 and 26 Oct.). China formally opposed attempts by Taiwan's supporters to bring it into the negotiation process of the UN Framework Convention on Climate Change as an observer. A Chinese representative at Cancun claimed that some countries had “tried to mix negotiations with political issues such as the issue related to Taiwan … These speeches went against the purposes and principles of the UN Charter and relevant regulations of the UNFCCC, and constituted a violation of China's sovereignty and territorial integrity, and interference in its internal affairs” (XHNA, 9 Dec.).

Taiwan welcomed the announcement in the Hong Kong Chief Executive's policy address that Hong Kong would be discussing plans with Taiwan to open a “comprehensive” office in Taiwan (CNA, 13 October). Hong Kong decided that it would upgrade the tourism board's office in Taipei to a full representative office with an enhanced role in promoting tourism (XHNA, 17 Dec.).

United Nations

The UN Secretary General, Ban Ki-moon, visited China from 30 October to 3 November, primarily to attend the closing session of the Shanghai World Expo. He had talks with Yang Jiechi covering Millennium Development Goals, climate change and other international and regional affairs (XHNA, 30 Oct.). He met President Hu Jintao in Beijing on 1 November. President Hu told him that the UN needed to abide by the purposes and principles of the UN Charter, actively practice multilateralism, and push forward democratization of international relations. He also suggested that the UN speed up measures to implement the Millennium Development Goals and strengthen its roles in international affairs. He also had meetings with State Councillor Dai Bingguo and with Wu Bangguo (XHNA, 1 Nov.).

USA

China's relations with the US remained scratchy throughout the period with concerns over the yuan exchange rate, the military relationship, and North Korea featuring largely. Some efforts were made to get the military relationship back on track, although it remained overshadowed by continuing Chinese concerns over arms sales to Taiwan, and by questions over the US military presence and activities in East Asia. The Chinese Minister of Defence, Liang Guanglie, went to a meeting in Hanoi of ASEAN Defence Ministers during which he had a meeting with the US Defence Secretary, Robert Gates (XHNA, 6 October). The annual consultations under the Military Maritime Consultative Agreement were held in Hawaii in mid-October. The two sides exchanged opinions on the maritime security situation in a candid manner (XHNA, 17 Oct.). Ma Xiaotian, Deputy Chief of the PLA General Staff, led the Chinese delegation to the 11th round of defence consultations to exchange views on military ties, maritime military security and other international and regional security issues. The session was held on 10 December with US Under-Secretary for Defence, Michele Fournoy. It was agreed that Defence Secretary Gates would visit China January 2011. Ma said that China attached importance to military-to-military relations and had made sincere efforts for their steady and healthy development. He noted that while they shared wide-ranging common interests some obstacles remained such as US arms sales to Taiwan, Congress bills restricting military exchanges between the two countries, and the high frequency of military surveillance close to China's special economic zone (XHNA, 10 Dec.). The Ministry of Commerce welcomed on 15 October reports that the US intended to waive the embargo on sales of the C-130 to China for use in oil-spill response operations (XHNA, 15 Oct.).

In a sign of warming relations, the US Attorney General Eric Holder visited China in October and was accorded a meeting with Zhou Yongkang, the Politburo Standing Committee Member in charge of security issues. In a press conference at the end of his visit, Holder said that China and the US would be key partners in combating corruption, terrorism and other crimes. He said that the two sides would work together to produce tangible results (XHNA, 21 Oct.). Wang Yi, Director of the Taiwan Affairs Office, visited Washington in late October and met US Secretary of State Hillary Clinton, Deputy Secretary of State James Steinberg, Assistant Secretary of State Kurt Campbell and National Security Council's Senior Director of Asian Affairs Jeff Bader for discussions on Taiwan (XHNA, 22 Oct.). A Xinhua article noted that US politicians had been making China a scapegoat in the mid-term election campaigns. A number of candidates had issued advertisements accusing their opponents of helping China at the expense of American workers. The article quoted a number of US sources deploring this trend and the distorted view it gave of the relationship between China and the US (XHNA, 29 Oct.).

Vice Premier Wang Qishan visited Washington for the 21st Joint Commission on Commerce and Trade on 15 December. The Chinese press reported that these had had a positive outcome and a number of bilateral agreements were signed covering a variety of areas such as investment promotion, agriculture, examination, inspection and quarantine, energy, water conservancy and trade statistics. They agreed to explore the possibility of establishing a bilateral framework on intellectual property rights. China agreed to resume imports of beef. According to Chinese statistics, from January to November this year, bilateral trade reached US$346.9 billion, surpassing that for the whole year of 2008 (XHNA, 126 Dec.).

State Councillor Dai Bingguo had an informal meeting with US Secretary of State Hillary Clinton in Hainan after the East Asia Summit. They exchanged views in a “candid and friendly manner” and agreed to enhance their dialogue and handle differences on sensitive issues properly (XHNA, 1 Nov.). US Deputy Secretary of State, James Steinberg, visited China from 15 to 17 December, primarily for discussions on Korea. He met State Councillor Dai Bingguo on 16 December, and had discussion with Vice Foreign Ministers Zhang Zhijun and Cui Tiankai and with Wu Dawei. A press statement described the talks as useful. Dai reiterated China's position that China has always held a highly responsible attitude and played a constructive role on the Peninsula issues. “China maintains that it is of great urgency that parties involved should jointly prevent the escalation of tension on the Korean Peninsula. The six-party talks are the only effective way to solve the Peninsula issues and realize lasting peace and stability in Northeast Asia” (XHNA, 16 and 17 Dec.).