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China stresses 'peace strategy' in talks
(Reuters)
Updated: 2005-12-09 20:40

This year, China's trade surplus with the United States is likely to reach $200 billion. But Chinese officials said Washington should not allow friction to overshadow the relationship, Xinhua reported.

"Both sides should insist on dealing with Chinese-American relations from a strategic, long-term perspective," it said.

The U.S. official said the Americans also reiterated concerns about China's strategic intentions amid its military buildup. The Chinese discussed perceptions the United States sought to contain or curb its rise, he said.

China's official military budget in 2005 was 247.7 billion yuan, but the Pentagon and many foreign analysts believe real military spending is much higher.

China's military spending is "open and transparent," a spokesman for China's foreign ministry said on Thursday. "China is pursuing a preventative defense policy," he said.

The two countries agreed to another round of discussions next year, said Xinhua.