Defense Minister Cao Gangchuan will visit the United States in the second half of next month, Foreign Ministry spokesman Kong Quan said yesterday in Beijing.

Kong, declining to say if nuclear issues regarding the Democratic People's Republic of Korea will be on the agenda, said the visit is still under discussion.

Military exchanges between China and the United States play an important part in bilateral relations and are conducive to deepening mutual understanding and expanding consensus, Kong said at the regular news briefing.

He also noted that China and the United States should properly handle occasional problems and friction in bilateral trade relations.

"Bilateral trade relations will develop in a healthy and steady manner only when the two sides solve the problems through dialogue on the basis of enhanced mutual understanding and trust," Kong said.

He said Sino-US trade relations are mutually beneficial and the two sides should consult one another on an equal footing and take a pragmatic attitude in solving issues.

China's market will further expand now that it is a member of the World Trade Organization (WTO) and Sino-US trade and economic cooperation will expand and deepen along with that, Kong said.

"We cannot accept the claim that China has not fully honored its commitments after joining the WTO," he said. "The fact is that China has made huge efforts to honor its commitments with a very serious and responsible attitude."

China has cut its general levels of tariffs from 15.3 percent in 2001 to the current 12 percent, abolished some non-tariff measures and gradually promoted the openness of services and goods markets.

Kong said China has reformed its laws and regulations for compliance with WTO requirements and its commitments. It has set up consultation mechanisms to increase transparency.

Kong also said China and Russia have reached consensus to further expand their cooperation in energy, including the oil pipeline project.

He said the meeting between the Chinese premier and Russian prime minister next week will cover such issues.

When asked to comment on the United States veto of a United Nations resolution demanding that Israel not harm or expel Palestinian President Yasser Arafat, Kong said China firmly opposes Israeli moves to expel Arafat or threaten his security in any form.

Kong urged Israeli and Palestinian leaders to seek a political solution.

(China Daily September 19, 2003)