    [Weekly Compilation of Presidential Documents Volume 42, Number 16 (Monday, April 24, 2006)]
    [Pages 741-745]
    [Online from the Government Publishing Office, www.gpo.gov]

    <R04>
    Remarks Following a Meeting With President Hu Jintao of China and an
    Exchange With Reporters

    April 20, 2006

        President Bush. The President and I will make opening statements.
    We'll be glad to answer two questions from each side.
        Mr. President, welcome. We've just had yet another constructive
    dialog. I enjoy my visits with President Hu. He tells me what

    [[Page 742]]

    he thinks, and I tell him what I think, and we do so with respect.
        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've got a mutual interest in seeing that the
    Korean Peninsula is nuclear weapons-free. 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. So it's a very
    important relationship.
        And, Mr. President, thank you for your frankness and for our
    discussions.
        President Hu. To begin with, I would like to thank President Bush
    for his kind invitation and the generous hospitality accorded to me. And
    just now I had a pragmatic and constructive dialog 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 important agreement at the meeting. We both agreed
    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 the 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 agreed to view and address the bilateral relationship from a
    strategic and long-term perspective, and we both agreed to
    comprehensively move forward the constructive and cooperative China-U.S.
    relationship in the 21st century, to the benefits 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 the cross-straits relations. We have the utmost
    sincerity, and we will do this to 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 of the Chinese concerns. He
    reiterated the American positions and said that he does not hope that
    the moves taken by the Taiwan authorities to change the status quo will
    upset the China-U.S. relationship, which I highly appreciate.

        We both agreed to work together to promote the development of the
    economic ties and trade between the two countries on basis of a mutual
    benefit in 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 agreed 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 dialog 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.

        Both sides agreed to continue their efforts to facilitate the six-
    party talks to seek a proper solution to the Korean nuclear issue, and
    both sides agree 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 a joint endeavor
    to build a harmonious world featuring enduring peace and shared
    prosperity.

        President Bush. Jennifer [Jennifer Loven, Associated Press].

    [[Page 743]]

    Chinese Currency/Democracy in China

        Q. Thank you, sir. 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?
        President Bush. Last July, the Chinese made a major decision on
    their currency. There's been some appreciation in the currency. We would
    hope there would be more appreciation in the currency.
        Q. President Hu?
        President Hu. I don't know--what do you mean by a democracy? What I
    can tell you is that we've always believed 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 the 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 the Chinese citizens.
        In the 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 a socialist democracy, and we
    will further expand the orderly participation of the Chinese citizens in
    political affairs so that the Chinese citizens will be in a better
    position to exercise their democratic rights in terms of democratic
    supervision, democratic management, and democratic decisionmaking.
        President Bush. Do you want to call on somebody from the Chinese
    side?

    China-U.S. Relations/Trade

        Q. I have a question for President Hu Jintao. And how do you view
    the problems and 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?
        President Hu. The economic ties and trade between China and the
    United States are an important component--the China-U.S. relationship as
    a whole. And in this economic ties and trade, I think that 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 a equal footing and further expansion of the mutually
    beneficial cooperation.
        We understand the American concerns over the trade imbalances, the
    protection of the intellectual property rights, and market access. We
    have taken measures, and we'll 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. We do not pursue a 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 the market access and increase the import
    of American products. As a matter of fact, lately, a delegation composed
    of Chinese businesspeople 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 U.S. dollars.
        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 its
    export, particularly high-tech export 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.
        President Bush. Let me say something on this. First of all, it was a
    very comprehensive answer, and I appreciate that, Mr. President. I am
    heartened by the President's answer because he recognizes that a trade
    deficit with

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    the United States as substantial as 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.
        What also is very much important is that for the--as the Chinese
    society evolves, that it becomes an economy that is not export-driven
    but consumer-driven. I appreciate the Government's commitment to that
    evolution, because as there's more consumers and market access, it will
    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.
        Steve [Steve Holland, Reuters].

    Iran/North Korea

        Q. Thank you. President Bush, have you presented 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?
        President Bush. The first goal of any dialog 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 to how to make a nuclear weapon.
        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 VII to
    send a common message to the Iranians that China and the United States
    and EU-3 countries, all deeply are concerned about the Iranian ambition.
        China is 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 a--an Iran without the capacity,
    the know-how, or a nuclear weapon.
        President Hu. As our friends may know, that the nuclear issue on the
    Korean Peninsula, China has always been persuading the parties for their
    reconciliation and promote the talks for 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 talks and successfully concluded a joint statement as a initial
    result, which has not come easily.
        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.

    China-U.S. Cultural Exchanges

        Q. Mr. President, good morning. 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?
        President Bush. I remember giving--well, the first graduation speech
    I ever gave as President was to Notre Dame. And I was--I distinctly
    remember the--a number of Chinese students that were there who had
    gotten advanced degrees. And it's a vivid reminder that one of the best
    ways for there to be exchange is for there to be 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 will be exchanges in the arts. 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

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    a 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 dialog.
    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.

    Note: The President spoke at 11:16 a.m. in the Oval Office at the White
    House. In his remarks, he referred to Yao Ming, center, National
    Basketball Association's Houston Rockets. President Hu and two reporters
    spoke in Chinese, and their remarks were translated by an interpreter.