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Thirty-five years ago when Henry Kissinger was the US secretary of state, the rationale behind the detente between Beijing and Washington seemed simple: to overcome ideological barriers and parry common threat.The world has undergone a lot of changes since then. The Cold War is now part of history and the leaderships on both sides belong to another generation. But the 85-year-old US diplomatic policy expert believes cooperation between China and the US remains the key to solving many international issues.The two countries should work together on vital issues such as the denuclearization of the Korean Peninsula, nuclear non-proliferation, climate change and energy, Kissinger told China Daily on Sunday."Progress in the Democratic People's Republic of Korea (DPRK) depends on close cooperation between China and the US because we have learned (it) affects the security and the well-being of our country," Kissinger said.He supports the visit of the New York Philharmonic Orchestra to Pyongyang, which he compares to the Philadelphia Orchestra's tour to China in 1973."I also think we have to continue the Six-Party Talks in order to come up with a solution to the nuclear problem," he said.But will Beijing and Washington keep working together closely, given the uncertainties of the US presidential campaigns? Kissinger shrugs off the worries. "In a political campaign, many things are said but they don't last."We have had seven American presidents since the normalization (of ties between China and the US), and no matter what was said in the campaigns, they all have come back to the theme of the beginning of the relations."Beijing-Washington ties will keep moving forward - not always smoothly but positively - somehow like a long-term stock market curve "but without those big fluctuations", Kissinger said.He is certain that the two sides will keep cooperating on China's core concern, the Taiwan issue, to ensure that there is no showdown in the Taiwan Straits."I think Beijing and Washington will cooperate and really pressure Taipei that if they do not pull back it could look extremely unfavorable," he said. "I believe that we will avoid a crisis in the Taiwan Straits."Kissinger has met with every generation of the leadership since the establishment of the People's Republic of China, and hence is familiar with them. And he believes the present leadership can tackle complicated issues."Each generation has its own characteristics. Deng Xiaoping is an enormous figure for his vision and courage in guiding China on the road to market reforms. But every generation of leaders has made some significant contributions," he said."This generation is educated in universities and has more technical knowledge than the first generation. It has handled very complicated situations with considerable wisdom and skill."Kissinger visited China last week at the invitation of the Chinese People's Institute of Foreign Affairs. He has visited the country more than 50 times, and is impressed by the tremendous progress it has made, enabling it to navigate the changes in the world."I see tremendous vitality in the Chinese people and the people I talked with are also ambitious to study and to do something. I identify China with tremendous capacity to grow, and great opportunities with these people."His last visit to China was in a totally different scenario compared to his first few trips when there was no diplomatic or trade link between Beijing and Washington. More than three decades after his ice-breaking visit, Kissinger remains proud of what he did to "open" China."I consider that the single most important thing I did in government and the one that had the best permanent effect."Rice on vital visitUS Secretary of State Condoleezza Rice will arrive in Beijing today amid the heated presidential campaign in her country and some disturbing developments in the Taiwan Straits.Rice has a very busy schedule in Beijing, holding talks with Foreign Minister Yang Jiechi today. She flies to Japan tomorrow morning on the final stop of her Asia tour.This could be Rice's last visit to Beijing, and offers a chance for high-level policymakers on both sides to address issues of mutual concern, ranging from Taiwan to denuclearization of the Korean Peninsula and from Kosovo declaring independence to Sudan."The annual National People's Congress session will begin soon, while US politics is getting more and more focused on the presidential election. So this could be an important chance for high-level talks," said Yuan Peng, a senior American studies researcher with the China Institute of Contemporary International Relations.Yuan said the Taiwan question is likely to be a key topic during Rice's talks with Chinese leaders because neither side wants to see a conflict across the Straits. The Democratic People's Republic of Korea is another issue important to the two sides.
A pedestrian walks past a branch of China Construction Bank in Shanghai June 3, 2007. [newsphoto]China's central bank is considering establishing a deposit insurance system in a bid to promote financial stability, news reports said on Monday. The People's Bank of China (PBoC) aims to push forward legislation on deposit insurance, the Xinhua News Agency reported, citing information from a central bank meeting. PBoC has carried out research looking into this matter, according to the report. Deposit insurance is a measure introduced by policy makers to protect deposits, in full or in part, in the event of banks being unable to pay deposits. The insurance can maintain public confidence in the financial system and prevent bank runs, thus helping promote financial stability. The United States was the first country to establish an official deposit insurance scheme, during the Great Depression in 1934. Currently, nearly 100 countries have such an arrangement in place. The lack of deposit insurance in China is related to the fact that most of the banks in the country are State-owned, which offer confidence to depositors, analysts said.

China will undertake nearly 10 percent of an international fusion-research project to be implemented this year.The project is called ITER and wants to demonstrate the scientific and technical feasibility of fusion power - the energy of the sun or hydrogen bomb - for peaceful use."The project aims to find a shortcut to solve our energy shortage," Luo Delong, deputy director of the ITER China Office, said at the Oriental Science and Technology Forum held in Shanghai over the weekend.He said Chinese researchers will be in charge of producing various components of the project and escorting them into Cadarache in the south of France where the ITER's key equipment will be constructed.China will inject about one billion yuan (US7.5 million) into the project, accounting for nearly 10 percent of the overall ITER investment, officials said.Other partners in the project include the European Union, the United States, Japan, India and Russia.According to Zhang Jie, a fusion-power scientist of Jiao Tong University, researchers of universities in Shanghai, including Fudan and Donghua, are conducting fusion-related studies.China will further enhance its education in the area to lift the country's overall research power.The long-term objective of the research is to harness fusion nuclear energy to help meet the future energy needs of mankind, project officials said.The aim of ITER is to show fusion can be used to generate electrical power and do the preparation work to build and operate an electricity-producing plant.The key part of the project is to develop a viable fusion-power reactor.Scientists of ITER will test a number of key technologies, including the heating, control, diagnostic and remote maintenance that will be needed for a real fusion-power station, officials said.Local experts said fusion may produce dozens of times more energy than fission, which now directs most of the world's nuclear-power plants.Fission can only be caused by uranium. However, the resource to trigger fusion can be found in ordinary substances from the sea, they said.According to the Website of ITER, the overall construction cost of ITER is estimated at five billion euros (US.37 billion) over 10 years and another five billion euros are earmarked for the 20-year operation period.The ITER organization owns the ITER device and is responsible for all aspects of the project, such as licensing procedures, hardware procurements and operation.
Chairman of the US Joint Chiefs of Staff Marine Gen. Peter Pace inspects the guard of honor during a welcome ceremony at the Defence Ministry in Beijing March 22, 2007. [Reuters]"Clearly, both the United States and China have enormous military capacity, but equally clearly neither country has the intent to go to war with the other. So absent of intent, I don't find threat," General Peter Pace, chairman of the Joint Chiefs of Staff said. "We should not focus on how to fight each other but how to prevent military action. That is what my government is focused on, and that is what my Chinese counterparts here have said their government is focused on." Pace arrived in Beijing Thursday for a four-visit which as he said is aimed at boosting military ties Pace said he had discussed the sensitive topic of Taiwan with the Vice Chairman of the Central Military Commission, Guo Boxiong, Defence Minister Cao Gangchuan and Foreign Minister Li Zhaoxing. "It is not surprising that in each of the meetings, the issue of Taiwan came up. It is clearly a fundamental issue with China," he said. Asked about the possibility of a conflict over Taiwan, he said: "I believe there are good faith efforts among all the leadership to prevent that." Pace said he had repeated US President George W. Bush's position that the US leader "would not support Taiwan independence" and that Washington wanted the issue to be handled peacefully. Pace's visit follows a US announcement last month that it plans to provide over 400 missiles to Taiwan.China's military is proposing officer exchanges and other confidence-building measures with the US Army and may be inching closer to setting up a "hotline" for emergency communication with Washington, according to Pace. Pace said he immediately agreed to study the proposals put forward Friday by Gen. Liang Guanglie, chief of the PLA's General Staff Department. "To me this was a very good, open discussion and one that I found very encouraging," Pace told reporters in Beijing. Liang's proposals included sending Chinese cadets to the Army academy at West Point as well as participating in joint exercises and humanitarian and relief-at-sea operations "that might be able to build trust and confidence amongst our forces." Military exchanges were largely suspended following a collision between a US spy plane and a Chinese jet fighter over the South China Sea in 2001. Pace said the sides agreed to keep discussing setting up a "hotline" between either military or civilian leaders that would help ease any future friction. "The Chinese military understands as well as I do that the opportunity to pick up the phone and talk to somebody you know and smooth out misunderstandings quickly is a very important part of relations between two countries," Pace said.
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