In 2005, China-US relations were generally characterized by sustained stability and development. The two countries' dialogue and cooperation in areas such as the economy, science and technology, antiterrorism, nuclear non-proliferation and regional security made strides.

The key to steady, sound development of China-US relations lies in the continued close contact and communication between top leaders of the two counties. Chinese President Hu Jintao and his US counterpart George W. Bush met on several occasions in 2005, reaching important consensus on promoting across-the-board constructive bilateral cooperation. In addition, US Cabinet secretaries of state, defense, treasury, commerce and agriculture visited China, as did the chairman of the US Federal Reserve, chairman of the US Securities and Exchange Commission and the US trade representative. Mutual dialogue and exchanges at various levels and covering a range of issues enhanced understanding and trust between the two sides.

A crucial part of bilateral relations--China-US military relations--were gradually brought back on track. US Secretary of Defense Donald Rumsfeld's visit to Beijing in October 2005 marked a substantial restoration of military exchanges between the two sides. It is expected to help the US military gain a better understanding of China and dispel suspicions.

At present, the significance of China-US relations has transcended national boundaries to become ever more globally relevant. China and the United States share a broad range of common interests on major issues such as accelerating UN reforms, resolving regional disputes, preventing and dealing with terrorism, checking the spread of weapons of mass destruction, preventing natural disasters and controlling infectious diseases. Fruitful cooperation on these issues has yielded positive results.

Trade volume between China and the United States reached US$211.6 billion in 2005, up 24.8 percent year on year. China is the third largest trading partner of the United States and its fastest growing export market, while the United States is China's second largest trading partner. However, this rapidly growing economic and trade cooperation has given rise to some frictions and a considerable surplus for China. But China will continue to take active measures to address trade disputes and phase out trade imbalances in the interests of mutually beneficial economic and trade relations.

China and the United States also have disputes on other issues, such as Taiwan, the "China threat'' theory, China's religious policy, the RMB exchange rate and intellectual property rights protection. It is imperative that the two countries strengthen dialogue, enhance understanding, expand consensus and deepen mutual trust. As long as the two countries respect each other, treat each other equally and seek common ground while resolving differences, China-US relations will forge ahead, contributing to the well-being of the two nations and that of the world.