China opened the door yesterday for talks with the United States on its proposed controversial Missile Defence System (MDS).
While senior US officials were attempting to win support for the MDS around the world, China said that although it was opposed to the system it would not rule out negotiating with the US on the issue.
A Foreign Ministry spokesman said the Anti-Ballistic Missile (ABM) treaty had served as the cornerstone of global strategic balance and stability. On the other hand, the MDS would ruin this balance and lead to another arms race.
He urged the US to adopt a cautious attitude towards the issue and observe arms-control treaties and agreements.
Meanwhile, former president Mr Bill Clinton moved to patch up frayed Sino-US relations when he said co-operation, and not confrontation, was essential for stability and prosperity in Asia.
Mr Clinton called for China's speedy entry into the World Trade Organisation, saying the United States had a fundamental interest in promoting partnership in the region.
He told an economic forum attended by 700 world business leaders in Hong Kong that the key "is getting the China relationship right".
"When I was president I spent a lot of time and energy on building a positive relationship with China," he said.
While there would always be "difficulties and bumps on the road in our relationship", Mr Clinton stressed "engaging China was the best way to ensure stability". His speech was interpreted as an attempt to caution the Bush administration against its initial confrontational stance towards China.
"The important thing is not to assume the relationship is inherently adversarial but instead to take what we know is true - that the world will be a better place over the next 50 years if we are partners, if we are working together," Mr Clinton said.
Relations between the US and China have become strained since the Bush administration took power in January.
Tensions have risen over the spy-plane incident (in which a Chinese pilot was killed) a major US arms deal with Taiwan, the detention of several US-based academics in mainland China and America's MDS plans.
Mr Clinton met President Jiang Zemin on the fringes of the conference for an hour on Wednesday. The former US president said it was imperative to complete China's accession to the WTO at the earliest possible date. China is still negotiating a number of issues and some analysts fear the frosty relations with the Bush administration could further delay its entry.
Joining the WTO would tie China closer to the rest of the world "in a way that will ensure the continued advance of prosperity, stability and personal freedom", Mr Clinton said.
Strains in the US-China relationship have prompted the Chinese leadership to throw a news blackout over Clinton's visit with no coverage of Mr Clinton's arrival in the country in the Chinese media.