The move was hailed by Foreign Ministry spokesman Liu Jianchao as a positive step towards enhanced exchanges and co-operation between the two nations.

The establishment of the FBI office was announced by visiting US Attorney General John Ashcroft Thursday.

Liu said: "China hopes and believes that the new FBI office will help promote Sino-US exchanges and co-operation in counter-terrorism and law enforcement on a mutually beneficial basis.''

Liu said the two sides agreed in February that the FBI could set up a temporary office in the US embassy in Beijing and China holds the right to establish a corresponding institution in the United States.

Noting that China has always opposed terrorism in any form and actively participated in international counter-terrorism co-operation, Liu said China and the United States have established a middle and long-term mechanism on counter-terrorism exchanges and co-operation according to the consensus reached by the heads of the two countries.

Both sides agreed that their co-operation is an integral part of international counter-terrorism efforts and an important part of constructive Sino-US co-operation, Liu said.

Last month, the United States put the East Turkistan Islamic Movement (ETIM) on its list of terrorist organizations.

The group has masterminded a string of violent terrorist activities during the past two decades in the Xinjiang Uygur Autonomous Region and some other places in mid-Asia.

The two countries have conducted two rounds of consultations, in December and June respectively.

The third round of consultations is expected soon, Liu said without specifying the exact date.

The spokesman also revealed that China's special envoy to the Middle East, Wang Shijie, is expected to visit the strife-torn region early next month.

(China Daily October 25, 2002 )