China continues its policy of expanding common interests with the world's major countries, and resolving differences in a proper way, based on the Five Principles of Peaceful Coexistence.

Sino-US Relations

In 2005, through meetings, letters and phone calls, Chinese President Hu Jintao and US President George W. Bush furthered their exchanges and mutual trust, expanded common understanding and cooperation, and promoted a constructive and cooperative bilateral relationship in an all-round way. In September, President Hu Jintao held talks with President Bush during the United Nations Summit in New York. In November, President Bush paid the first visit to China since beginning his second term and held talks with President Hu Jintao in Beijing. Apart from meetings at presidential level, Chinese State Councilor Tang Jiaxuan visited the US in July; US Defense Secretary Donald Rumsfeld paid his first visit to China since assuming office in 2001. The US Secretary of State Condoleezza Rice, the Commerce Secretary, the Treasury Secretary, the chairperson of the Federal Reserve Board, and the chairperson of the Securities and Exchange Commission also visited China, illustrating the remarkable increase in bilateral dialogue and contacts at all levels and in all fields. China strengthened cooperation with the US in tackling issues such as the DPRK nuclear program, anti-terrorism, RMB exchange rate and textile exports, setting a positive note and creating a good atmosphere for the establishment of constructive and cooperative bilateral relations. The first strategic dialogue was held in Beijing in August and the second in Washington in December. In economic and trade relations, the US has become China's largest export market and the second largest trade partner whilst China is the third largest trade partner and the fastest growing export market of the US.

Sino-Russian Relations

The year 2005 saw substantial progress in Sino-Russian cooperation in many fields, including energy, finance, and electric power, establishment of a strategic security negotiation mechanism, and a deepening partnership of the strategic cooperation. In June, China's and Russia's foreign ministers exchanged the Instrument of Ratification for the Supplementary Agreement on the Eastern Section of the China-Russia Boundary Line, which put an end to the Sino-Russian boundary dispute. President Hu Jintao attended the 60th anniversary of the victory over Nazi Germany in May. Between late June and early July he made a state visit to Russia and signed a joint statement on the world order in the 21st century with Russian President Vladimir Putin; this set out the opinions of the Chinese and Russian governments on the present international situation and their stand on key international and regional issues. In August, China and Russia conducted joint military exercises, dubbed Peace Mission 2005, in Vladivostok, Russia, and China's Shandong Peninsula and surrounding waters. In November, the two prime ministers reached an agreement at their 10th regular meeting that the two countries would strengthen their energy cooperation and deepen their long-term cooperative relations in spaceflight. The Year of Russia was formally launched in China on January 1, 2006.

China-EU Relations

In 2005, the 30th anniversary of the establishment of diplomatic relations between China and the European Union, the two sides further consolidated and enriched their all-round strategic partnership. There were frequent top-level visits between China and the EU and steady progress in exchange and cooperation in economy and trade, science and technology, culture, education, and justice administration. ò2005 D the EU's Year of Chinaó became a buzzword at EU headquarters.

In July, the newly inaugurated President of the EU Commission, Jos? Manuel Barroso, visited China. On September 5, during the UK's EU Council Presidency, British Prime Minister Tony Blair, Jos? Manuel Barroso, and Javier Solana, EU Council Secretary-General and High Representative for the EU Common Foreign and Security Policy, attended the Eighth China-EU Summit in Beijing. The two sides issued the Joint Statement of the Eighth China-EU Summit and the Joint Declaration on Climate Change between China and EU; they signed documents on cooperation in transportation, environmental protection, space development and construction of Beijing Capital International Airport, raising China-EU relations to a new height; they decided that 2006 was to be òChina-EU Science and Technology Yearó and agreed to begin negotiations on a new China-EU framework agreement as soon as possible.

In December, China's Vice Foreign Minister Zhang Yesui held the first round of China-EU strategic dialogue with EU senior officials, including Ian Pearson, Britain's Secretary of State for Foreign and Commonwealth Affairs, thus formally establishing the second channel for China-EU high-level dialogue. In November, President Hu Jintao paid a state visit to the UK, Germany and Spain, injecting fresh vigor into bilateral relations with these countries. China and Spain published their first joint communiqu? since establishing diplomatic ties and decided to set up an all-round strategic partnership. In December, Premier Wen Jiabao paid official visits to France, Slovakia, the Czech Republic and Portugal, further enhancing overall China-EU relations.

Sino-Japanese Relations

In 2005, China and Japan made progress in economic and trade cooperation, strategic dialogue, and people-to-people contacts. In April, Chinese President Hu Jintao met with Japanese Prime Minister Junichiro Koizumi at the Asia-Africa Summit and put forward a five-point proposal for improving Sino-Japanese relations. Chinese Vice Foreign Minister Dai Bingguo and Japanese Foreign Ministry Undersecretary Shotaro Taniuchi held three rounds of Sino-Japanese strategic dialogue in 2005. The two sides exchanged views on bilateral relations, and on regional and international issues of common concern, agreeing to keep the dialogue process moving forward.?

In adherence to its principles, the Chinese government firmly struggles against Japan's right-wing forces, which cling to their wrong stand on history and other key problems in Sino-Japanese relations. China advocates that disputes over oil rights in the East China Sea, sovereignty over the Diaoyu Islands and historical problems should be settled through dialogue and negotiation, and expanding cooperation in all fields to the mutual benefit of both nations.