Premier Wen Jiabao said the Chinese government's position on upholding the one-China principle "is rock solid and defies all challenges," and the Chinese people "will not sit by and do nothing when faced with provocative activities aimed at splitting the motherland."

Wen made these remarks during an interview with Leonard Downie, executive editor of the Washington Post of the United States, in Beijing on Friday.

When Taiwanese authorities announce intentions to separate Taiwan from Chinese territory, no Chinese citizen will agree to it, and the people of China will pay any price to safeguard the unity of the motherland, Wen said.

Wen said that the recent remarks and activities by Taiwan authorities, especially their deliberate provocations on the referendum and constitution issues, clearly show not only their clinging to splittism ideologies but also their stepped-up efforts aimed at Taiwan independence.

During the interview, Wen also questioned what intentions Taiwan's leaders had for its future, and whether they wanted to maintain peace and stability in the Taiwan Straits.

He expressed the belief that these questions are of concern to people on the Chinese mainland and to Taiwanese compatriots, as well as the United States and the international community at large.

The Chinese government's policy towards Taiwan is a clear-cut one. It involves "peaceful reunification and one country, two systems," the premier said.

"We will not give up our efforts for a peaceful settlement of the Taiwan question because it is in the fundamental interests of all Chinese people, including Taiwanese compatriots. But we will not sit by and do nothing when faced with provocative activities aimed at splitting the motherland."

Wen reiterated China's sovereignty and territorial integrity would brook no division, and that the position of the Chinese government in upholding the one-China principle is rock solid and defies all challenges.

The premier hoped the US government will recognize the gravity of the provocative remarks and actions taken by Taiwanese leader Chen Shui-bian, which could undermine the prospects for peaceful reunification. He also hoped the US side would not send any misleading signals to Taiwanese officials.

"We hope the US side will take practical measures that are conducive to the maintenance of peace and stability in the Taiwan Straits," he added.

The Taiwan question is the most important and sensitive issue in the China-US relationship, said Wen, stressing that "the US side must be very straightforward in adhering to the principles of the three Sino-US joint communiques and in opposing Taiwan independence."

He added that the US side must also be crystal clear in opposing the use of a referendum, writing of a constitution or any other tactics used by Chen in order to pursue his separatist agenda.

Wen also said the US side must adhere to the principle of the August 17 Sino-US communique and stop arms sales to Taiwan.

"This will fundamentally help maintain peace and stability in the Taiwan Straits. It will also be conducive to the advancement of the process of the peaceful reunification of China, and will be fundamentally helpful to the maintenance of world peace and stability," he said.

"We completely understand the desire of Taiwanese compatriots for democracy, and we also understand their hopes for a peaceful environment," the premier said.

"However, when the leadership of Taiwanese authorities wants to separate Taiwan from Chinese territory, no Chinese citizen will agree."

When answering questions about the trade problem between China and the United States, Premier Wen said that the disputes that have cropped up in bilateral trade and economic cooperation must be handled properly for the further expansion of trade and the development of economic cooperation between the two nations. When addressing the trade imbalance between the two countries, Wen gave a series of explanations on the matter.

"First, such a trade imbalance is to a great extent structural and a result of shifting commercial relations," Wen said. "I will give you one example. While the trade deficit that exists between China and the US is going up, China's deficit in our trade with Asian countries is also going up at the same time.

"In the first 10 months of this year, China's exports grew by 32 percent, but our imports grew by 40 percent.

"Second, if you look at our export structure, in actuality Sino-foreign joint ventures or wholly foreign-owned enterprises have contributed to 65 percent of our total exports and more than half of our exports involve the processing of imported material or parts, and the majority of profits actually go to the foreign investors. These enterprises include US-invested enterprises in China, such as Motorola and Wal-Mart.

"Third, what we sell to the US market are the products that US consumers need, and Chinese products are affordable but of very high quality. So our exports actually help stabilize the prices in US markets and also satisfy the needs of consumers.

"Fourth, it is not China's aim to seek long-term and excessive trade surpluses. Our aim in trade policy is to have a basic balance between imports and exports. We are willing to open up our markets to buy more from the United States and other countries, especially high-tech products.

"Not so long ago, we sent a few purchasing missions to the United States and they signed contracts worth billions of US dollars. That demonstrates our sincerity. At the same time, we hope that the United States will grant market economy status to China, lift restrictions and open up its market.

When talking about the recent US decision to re-impose quotas on Chinese textiles, Wen said that he and Chinese people as a whole were shocked with the decision. This unilateral restrictive action was taken without any prior discussion with the Chinese government, and seriously hurt the feelings of the Chinese people. Wen also questioned whether the US side had taken any heed of the response from the international community in this matter. He added that such a decision has in fact negatively affected the US market.

China's exchange rate was another significant issue stressed in the interview.

Wen said the exchange rate of the currency should be set in accordance to the conditions in the nation and the state of its economic and financial sectors.

"I don't think the exchange rate of the renminbi is an important contributor to the trade imbalance between China and the United States. If there is any important contributor to the trade imbalance, I think it is the abundant supply of competitive labor in China's market."

(People's Daily November 24, 2003)