Bush and Hu Meet With Press

SPEAKERS: GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES

HU JINTAO, PRESIDENT, PEOPLE'S REPUBLIC OF CHINA

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BUSH: The president and I will make opening statements. We'll be glad to answer two questions from each side.

Mr. President, welcome.

We just had yet another constructive dialogue. I enjoy my visits with President Hu. He tells me what he thinks, and I tell him what I think, and we do so with respect.

BUSH: China has important relations with the United States. We obviously have commercial relations that are important. We're working on issues like Iran and Sudan. We got a mutual interest in seeing that the Korean Peninsula is nuclear weapons-free.

And we spent time talking about Taiwan. And I assured the president my position has not changed: I do not support independence for Taiwan.

We don't agree on everything, but we're able to discuss our disagreements in a spirit of friendship and cooperation.

BUSH: So it's a very important relationship.

And, Mr. President, thank you for your frankness and for our discussions.

HU (THROUGH TRANSLATOR): To begin with, I'd like to thank President Bush for his kind invitation and the generous hospitality accorded to me.

HU (THROUGH TRANSLATOR): And just now, I had a pragmatic and constructive dialogue with President Bush. And during that meeting, President Bush and I had in-depth exchange of views on the China-U.S. relationship and major regional, as well as international, issues of mutual interest.

We have reached an important agreement at the meeting. We both agree that, under the new circumstances, given the international situation here, that China and the United States share extensive common strategic interests. And there is a broad prospect for mutually beneficial cooperation between the two countries.

A good China-U.S. relationship is of strategic significance to the maintenance and promotion of peace, stability and development in the Asia-Pacific region and in the world at large.

We both agree to view and address the bilateral relationship from a strategic and long-term perspective. And we both agree to comprehensively move forward the constructive and cooperative China- U.S. relationship in the 21st century to the benefit of the Chinese and American peoples and peoples around the world.

And during the meeting, I stressed the importance of the Taiwan question to Mr. President.

Taiwan is an inalienable part of Chinese territory. And we maintain, consistently, that, under the basis of the one-China principle, we are committed to safeguard peace and stability in the Taiwan Straits and to the promotion of the improvement and development of cross-Straits relations.

We have the utmost of sincerity and we will do our utmost with all sincerity to strive for the prospect of peaceful reunification.

This being said, we will by no means allow Taiwan independence.

President Bush gave us his understanding on the Chinese concerns. He reiterated the American positions and said that he does not hope that the move taken by Taiwan authorities to change the status quo will upset the China-U.S. relationship, which I highly appreciate.

HU (THROUGH TRANSLATOR): We both agree to work together to promote the development of the economic ties and trade between the two countries on the basis of our mutual benefit and seeking win-win outcomes.

As for the differences, or even frictions, between the two countries in this regard, we both believe that they may be properly resolved through consultations on an equal footing.

Both Mr. President and I spoke highly of the outcomes from the 17th JCCT meeting, which was held not long ago.

President Bush and I also agree that the two countries need to further increase their exchanges and cooperation in the military, law enforcement, science and technology, culture, education and other fields. We also both agreed to further step up our dialogue and cooperation in such fields as counterterrorism, nonproliferation, the prevention and control of the avian influenza, energy, environmental protection, disaster prevention and relief, and other major issues.

HU (THROUGH TRANSLATOR): Both sides agreed to continue the efforts to facilitate the six-party talks to seek the proper solution to the Korean nuclear issue. And both sides agreed to continue their efforts to seek a peaceful resolution of the Iranian nuclear issue.

I assured Mr. President that China is willing to work together with the United States and other countries in the world in the joint endeavor to build a harmonious world featuring enduring peace and shared prosperity.

BUSH: Thank you, sir.

QUESTION: President Hu, when will China become a democracy with free elections?

And, President Bush, why have you not been able to persuade China to more quickly revalue its currency?

BUSH: Last July, the Chinese made a major decision on their currency. There has been some appreciation in the currency. We would hope there would be more appreciation in the currency.

HU (THROUGH TRANSLATOR): I don't know what do you mean by a democracy. But what I can tell you is that we always believe in China that if there is no democracy, there will be no modernization.

Which means that ever since China's reform and opening up in the late 1970s, China, on one hand, has vigorously promoted economic reforms and, on the other, China has also been actively, properly and appropriately moved forward the political restructuring process. And we have always been expanding the democracy and freedoms for Chinese citizens.

In future, we will, in the light of China's own national conditions and the will of the Chinese people, continue to move ahead the political restructuring and to develop the socialist democracy, and we will further expand the orderly participation of Chinese citizens in political affairs so that Chinese citizens will be in a better position to exercise their democratic rights in terms of democratic supervision, democratic management and democratic decision- making.

BUSH: Do you want to call on somebody from the Chinese side?

QUESTION (THROUGH TRANSLATOR): I have a question for President Hu Jintao.

How do you view the problems and the disputes between China and the United States in the field of economic ties and trade? And in your view, what kind of measures shall we take to properly resolve these issues?

HU (THROUGH TRANSLATOR): The economic ties and trade between China and the United States are an important component of the China- U.S. relationship as a whole. And in this economic ties and trade, I think the mutually beneficial cooperation and win-win outcomes represent the mainstream.

Although the two countries do have different opinions, or sometimes even frictions, in this relationship, what has happened has proven that all these issues or differences can be properly resolved through consultations on an equal footing and further expansion of the mutually beneficial cooperation.

We understand the American concerns over the trade imbalances, the protection of intellectual property rights, and market access. We have taken measures and will continue to take steps to properly resolve the issues.

China pursues a policy of boosting domestic demand, which means that we'll mainly rely on domestic demand expansion to further promote the economic growth of the country.

HU (THROUGH TRANSLATOR): We do not pursue an excessively high trade surplus.

We have already launched the reform of the RMB Chinese currency exchange rate regime, which has paid off initially. And in the future we'll continue to make efforts to improve the RMB exchange rate regime.

We'll continue to expand market access and to increase the import of American products. As a matter of fact, lately a delegation composed of Chinese business people have been to the United States, and during their trip they have totally signed 107 commercial contracts or agreements with a total value of over $16.2 billion.

HU (THROUGH TRANSLATOR): The U.S. technology products export to China, particularly in the field of the export of high-tech products, are quite incompatible with the economic might of the United States.

I hope that the United States government will be able to relax or ease the restrictions imposed on these exports, particularly high-tech exports to China.

And we also hope that the U.S. government will be able to create a level playing field for Chinese businesses who want to enter the American market.

And this will certainly help bring down the trade deficit of the United States. And this will also contribute to the further sound and stable growth of the trading ties and economic cooperation between the two countries.

BUSH: Let me say something on this.

First of all, that was a very comprehensive answer, and I appreciate that, Mr. President.

I'm heartened by the president's answer because he recognizes that a trade deficit with the United States is essentially -- what it is is unsustainable.

I appreciate his statement very much because the American people -- all we want to do is be treated fairly in the international marketplace.

He's used the word "win-win," and that's a very important concept when it comes to economics that are mutually beneficial.

Market access is very important.

And I appreciate your commitment to that, Mr. President.

BUSH: What also is very much important is that as the Chinese society evolves, that it becomes an economy that is not export-driven, but consumer-driven. And I appreciate the government's commitment to that evolution, because as there's more consumers and market access, it'll mean that U.S. small businesses and businesses and farmers will have a chance to be able to find new markets.

Obviously, the Chinese government takes the currency issue seriously, and so do I.

And finally, I want to remind our citizens, as the president said earlier, exports to China are up by 21 percent. And that means jobs.

And so we're going to continue to work on this very important relationship to make sure the playing field is level.

QUESTION: Have you persuaded President Hu to go along with tougher actions against Iran if necessary, such as sanctions?

And, President Hu, is there more you can do to influence North Korea to give up nuclear weapons?

BUSH: The first goal of any dialogue with a partner with whom we're trying to create peace is to have a common objective, a stated goal. And we have a common goal, and that is that Iran should not have the nuclear weapon, the capacity to make a nuclear weapon, or the know-how of how to make a nuclear weapon.

BUSH: And the second goal is to be in a position where we can work on tactics.

And one of the tactics that I've been talking to the president about is the use of the United Nations Security Council Chapter 7 to send a common message to the Iranians that China and the United States and E.U.-3 countries all deeply are concerned about the Iranian ambition.

China's an important voice in international affairs. And I will continue to work with the president to strategize as to how best to achieve our important goal, which is an Iran without the capacity, the know-how or a nuclear weapon.

HU (THROUGH TRANSLATOR): As our friends may know, on the nuclear issue on the Korean Peninsula, China has always been persuading the parties for their reconciliation and promote the talks for a peaceful solution. And we have always been making constructive efforts to denuclearize the Korean Peninsula.

It is exactly thanks to the concerted efforts of the parties involved that in September last year the six parties had their fourth round of talks and successfully concluded a joint statement as an initial result, which has not come easily.

HU (THROUGH TRANSLATOR): The six-party talks have run into some difficulties at the moment. I hope that the parties will be able to further display flexibility, work together and create necessary conditions for the early resumption of the talks.

QUESTION (THROUGH TRANSLATOR): I would like to know what is on your mind and what kind of things you can do to facilitate the people- to-people and cultural exchanges between the two countries.

BUSH: You know, I remember giving -- the first graduation speech I ever gave as president was to Notre Dame. And I distinctly remember a number of Chinese students that were there who had gotten advanced degrees.

It is a vivid reminder that one of the best ways for there to be exchange is for there to be an exchange of students. I think the more U.S. students who study in China and the more Chinese students who study in the United States will lead to lasting understanding, which is very important for future relations.

Obviously, there'll be exchanges in the arts.

BUSH: There's a great interest in the United States about the Chinese arts and the history of Chinese arts.

There's going to be sports exchanges. Yao Ming -- I mean, he's a perpetual exchange. He's a great player and he's here all the time.

The Olympics will bring great opportunity for us to have interchange.

There's all kinds of ways for the United States and Chinese people to get to know each other. And I look forward to encouraging those kind of avenues of dialogue.

Presidents can talk, but sometimes the best way to have lasting friendship is for there to be a lot of people-to-people exchanges.

Thank you very much.

END

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Apr 20, 2006 12:34 ET .EOF

Source: CQ Transcriptions