China does not approve of the national missile defence (NMD) system which the US is planning to construct, Defence Minister Chi Haotian said Thursday.

In talks with his Australian counterpart Peter Reith, Chi said the NMD system will destroy the global strategic balance and stability, and possibly cause a new round of arms race.

Chi, who is also vice-chairman of the Central Military Commission and a state councilor, said the NMD system will harm the mutual trust among nations and generate profound negative impact on the international peace.

China attaches great importance to developing the relations between China and Australia and their armed forces, Chi said.

China is willing to work with Australia to ensure the stable and healthy development of the bilateral military ties within the framework of the overall relations between the two countries, he noted.

On the Taiwan issue, Chi said China will continue the basic principle of "peaceful reunification, one country and two systems" and stick to the Eight Proposals made by President Jiang Zemin.

China has the sincerity to seek peaceful reunification, while at the same time it also has the firm determination and necessary preparation to bar "Taiwan independence" and any separatist activities, he said.

Reith said that his country attaches importance to developing relations with major powers in the Asia-Pacific region, including China.

Reith also briefed the Chinese side on Australia's views on some regional issues. He added that the Australian government will continue to adhere to the one-China policy.

Prior to the talks, Chi held a welcoming ceremony for Reith.

Reith arrived in Beijing Thursday morning on an official good- will visit at the invitation of Chi.

(Xinhua 03/02/2001)