Question : China's international status is on the rise. At the recent China-US summit meeting, the US side urged China to play a bigger role in addressing global issues. Recently there have been increasing talks internationally about G2, but for China, growing its own economy may seem to be the overriding priority. What's your view on that?

Minister Yang: To cope with the impact of the international financial crisis, China, working with relevant countries, has made vigorous efforts to restore economic growth in China and the rest of the world. It took an active part in the three G20 financial summits held in Washington, London and Pittsburgh, and played an active role for the G20 to become an important platform for managing the world economy. China supports the reform of the international financial system and greater representation and voice of the developing world. It also champions more help to African countries in their efforts to attain the Millennium Development Goals.

There has been some new progress in China-US relations lately. President Obama visited China and had very good meetings with Chinese leaders. The two sides had an in-depth exchange of views on how to further grow China-US relations and strengthen cooperation in a wide range of areas. China and the U.S. agreed to build a positive, cooperative and comprehensive relationship for the 21st century and take concrete actions to steadily build a partnership to address common challenges, thus making contributions to world peace, stability and development. China is an important force for peace and a major contributor to the maintenance of world peace. We wish to work with not only the United States but also Japan and other countries around the world to jointly chart out a course towards the goal of building a harmonious world.

We have made it clear that we do not favor the idea of G2. We have also made this known to the Americans. China is a developing country with a huge population, weak economic foundation, and many challenges yet to be addressed at home. Issues of the world need to be tackled through discussion and consultation among the world's nations. China is an advocate of a multi-polar world, democracy in international relations and multilateralism. We value our cooperation with the United States, and we value no less our cooperation with Japan, Russia, India, the EU and other partners. We believe that countries should treat each other as equals. So in this sense, there are no grounds for introducing such an idea as G2. I am confident that, if the international community pool their efforts, there will be a brighter future for the world.

Question: China regards itself as a developing country, and a major player at the same time. It is actively engaged in resource-based diplomacy and its military budget is growing by double digits annually. But China hasn't fully explained those, leading to a lot of misunderstandings in other parts of the world. What's your comment on this?

Minister Yang: As a major socialist country, China has acted responsibly and made important contribution to peace, stability and development in the region and beyond. It will make even greater contribution in the days and years ahead. There is no conflict between being a developing country and a major country, and actually they both apply to China. China has been a major country since ancient times. Our traditional philosophy values peace. We are committed to building a harmonious world of lasting peace and common prosperity by upholding the Five Principles of Peaceful Coexistence, following a path of peaceful development, and pursuing mutual benefit and win-win progress. China is a major developing country that believes in principle, compassion and responsibility.

While we export Chinese products to other countries and regions, we also import tremendous amount of goods from the rest of the world. Our trade with other countries is mutually beneficial and win-win in nature. By importing from African countries, we help grow the local economy, which is in the interest of the countries involved. We have also assisted them in infrastructure development and carried out projects aimed at improving local livelihood, including agricultural, medical, school and hydropower projects. Who then should make a judgment on the merits of China's foreign aid? I believe it is first and foremost the recipient countries.

As regards China's military budget, it is within a reasonable range, and its moderate increase is in line with the requirements of China's national defense, the policy of which has been laid out in detail in the published white paper. The increase in our military spending is transparent.

It is our view that countries, big or small, are all equals. No country should bully any other whatever its might or size. This is what we preach, and what we practice.

Question: After three decades of economic boom in China since the introduction of reform and opening-up policies, there is now a gap between how the world sees China and how China sees itself. What do you think of this? In the past, China and the United States were economically complementary, and the two-way trade was a win-win scenario for both. But with the worsening of the international financial crisis, there have been frequent trade frictions between the two recently. What should the two countries do to adjust the trade structure?

Minister Yang: How does the world see China? The people around the world, the mainstream media and some individual media organizations have different answers to this question. People and the mainstream media the world over have generally looked at China in an objective light. But some influential media organizations, which are still affected by outdated ideologies, fail to portray China as it is. Yet the voice of a few, no matter how loud it is, cannot represent the views of the majority.

With the joint efforts of China and the United States, President Obama's visit to China has provided a strong boost to the development of China-US relations. It has helped to expand our shared interest, and is also conducive to peace, stability and prosperity in Asia and the world as a whole. Naturally, China and the United States do not see eye to eye on every issue. Some issues remain unsettled for the moment. But visits such as this help increase mutual understanding and narrow differences. The China-US Joint Statement issued this time is of great significance to guiding the relations forward in the months and years to come.

The sound and steady growth of the trade ties between China and the United States is good for both countries. The US financial crisis should not be blamed on buying Chinese goods. Seventy million shirts China makes to export are worth only one Boeing 747 aircraft in value. America spends far more on property than on average Chinese consumer goods. It is essential at this point for all countries to take active steps to restore world economic growth rather than resort to trade protectionist measures. Trade protectionism hurts everyone. China looks forward to positive and comprehensive outcomes from the Doha round negotiations, which will, like a rising tide lifting all boats, shape the environment for all economies to grow. The China-US Strategic and Economic Dialogues is a good platform. The leaders of the two countries have agreed to hold the second round of dialogues next year. This will help our economic and trade ties move forward on the right track.

China's share in the world economy remains limited, but its fast expansion is a powerful engine for Asian and the world economic growth. Naturally, China alone as a single powerhouse can not lead the world economy towards full recovery. We are pleased to note the signs of recovery in Japan, the EU and other economies. Our hope is that we can work together to turn the world economy around.

Question: The Hatoyama administration places importance on Asia, but it indicates that Japan's diplomacy will continue to be anchored in the Japan-US alliance. Given the increasingly close cooperation among China, Japan and the ROK and the growing significance of their relations, what is your perspective on the trilateral cooperation? Foreign Minister Okada said Japan should not choose its most important partner between the United States and China like choosing a lover. What do you think is the ideal relationship among Japan, China and the United States?

Minister Yang: Let me first say a few words about my recent trip to Japan. This visit was intended to engage the Japanese government and various sectors in discussions over how to open a new chapter in China-Japan relations. I met with Prime Minister Hatoyama and held talks with Foreign Minister Okada. My impression is that the government and all sectors in Japan hope that our two countries will make joint endeavor to steadily advance our strategic relations of mutual benefit and deepen cooperation in various fields including re-energizing Asia. I am pleased with the outcomes of the visit. Since Japan's new administration took office, China-Japan relations have made new headway. I am optimistic about the future of this relationship. Both China and Japan are major countries in Asia, and Asia has enormous development potential. Our two countries need to further intensify consultations and coordination in order to do more for Asia's peace, stability and development. Prime Minister Hatoyama also calls for building an East Asia Community. China, Japan and the ROK have agreed to launch joint FTA studies involving government agencies, industries and academia. Closer collaboration among the three countries in business and other fields is the shared aspirations of the people of the three countries. China is open to the exploration of all forms of cooperative mechanisms in Asia and the Asia Pacific. We should actively discuss any initiative that can contribute to the development of Asian countries and the well-being of the people in the Asia Pacific.

Japan's relations with the United States and Japan's foreign policy are up to the Japanese government and people. We hope to see a sound Japan-US relationship that is constructive to peace, stability and development in Asia.

China, Japan and the United States have smooth channels of communication. We value our relations with Japan and the United States, and want to strengthen cooperation with the two countries in the years ahead.

Question: China-Japan relations are growing steadily, but polls suggest Japanese people's sentiment to China is at a low ebb. Issues such as the East China Sea and the dumplings are still standing between the two countries. What steps should be taken to address them and bring the Chinese and Japanese people closer to each other?

Minister Yang: China and Japan enjoy geographical proximity and cultural affinity. We have two millennia of friendly exchanges as well as an unfortunate chapter in our modern history. I believe that as we grow our relations, those sensitive issues must be handled properly. It is important to discuss the overriding trend of the bilateral relations. With joint endeavor, China and Japan have overcome numerous difficulties to place the bilateral relations on track toward sound and steady development. This momentum should be treasured by both sides. The Chinese government and people always take a forward-looking approach and deem it important to take history as a mirror as we go forward. China and Japan need to work together to increase the exchanges and foster the friendship between our two peoples. In the recent years, there are increasing exchanges between our young people and young and middle-aged government officials. Such exchanges will enable the younger generations of China and Japan to view and appreciate each other from a more positive and objective perspective. I am confident that such activities will generate stronger popular support and a better media environment for the growth of the bilateral relations.

It is only natural that specific issues may crop up between the two countries. The two sides need to find appropriate solutions in the spirit of mutual respect, equality and mutual benefit. China and Japan have reached agreement in principle over the East China Sea issue. This will help advance our strategic relations of mutual benefit and keep the region stable. Engagement over this issue continues at the working level. The dumpling incident is a cross-border criminal case. The Chinese police are ready to continue to step up investigation efforts in closer collaboration with their Japanese counterpart to establish the facts at an early date. At the same time, it is noteworthy that the investigation into the case is quite tough and takes time. But the Chinese side is serious about it. Meanwhile, the leaders of our two countries have agreed to develop a framework for food safety cooperation. Our competent authorities have had initial contacts with the hope of establishing such a framework as soon as possible so that we can prevent or address potential food safety issues. Food matters most to people's life. We look forward to the day when the Chinese and Japanese people can share more delicacies with each other.