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I was pleased to have an opportunity to discuss these issues at length during a
meeting at the Ministry of Defense Foreign Affairs Bureau with Lieutenant
General Xiong Guang-kai. While it is clear that China and the United States
continue to have differences in this regard, I believe progress can be made in
resolving those differences. Specifically, I am encouraged by recent reports
which indicate that China may cancel the sale to Iran of a facility that can be
used to produce nuclear weapons. This would be a positive sign and an
indication that China takes seriously the American concern over proliferation.

I believe that seeking to halt the proliferation of weapons of mass destruction is in
the interests of both our countries and that we should work together to
accomplish this.

Many of us in the Congress are also seeking to understand the implications
for American security of the recently signed strategic cooperation
agreements between China and Russia. It has been reported in the West that
China purchases nearly $1 billion worth of weaponry from Russia each year.
Reportedly, China has recently purchased Russian weapons that were
specifically designed to counter U.S. military forces. This has led to concern that
China sees the United States as its number
one military adversary.

Finally on defense, let me note that the U.S. Congress will pay close
attention to the issue of ballistic missile defense.As more and more
countries acquire ballistic missiles, people everywhere will benefit from the
creation of an effective defense against them. I have long been a strong
supporter of missile defenses, because I believe the lack of such defenses
encourages those who would seek to acquire missiles that would place our
people at risk. It is the one great vulnerability we all share today, but it need not
be permanent. China has nothing to fear from our efforts to move forward with a
system that protects our citizens rather than threatening others. We should work
together.

Americans recognize that China is a great power. We have no desire to dictate
to China what it can and cannot do. But we seek a greater insight into the
decisions taken by your leadership. All we ask for in return is a greater
appreciation of American national security interests and a deeper understanding
of American foreign policy objectives.

China's economic prowess has led to a dedicated effort by your leaders to
modernize the Peoples Liberation Army (PLA). This was clear to me during my
visit to the National Defense University. Americans are watching with great
interest to see how China structures its military and whether future investments
will be focused on increasing China's offensive or defensive military potential.

While it is clear that you are making great strides to reform your military