The US said on Tuesday it would watch increased Chinese defense spending carefully, with an eye on whether a larger military budget this year will pose any new threat to the security of Taiwan.
Warning of drastic military changes in the world, China said on Tuesday it would boost its military budget by almost 18 percent this year to 141 billion yuan (US$17 billion).
Analysts estimate the real defense budget could be up to four times that figure as China upgrades the People's Liberation Army into a high-tech force capable of backing up a threat to invade Taiwan if the country declares independence.
Asked to comment on the increase, US Secretary of State Colin Powell said Washington did not see China as an enemy, but as a trading partner and occasional regional competitor.
He added: "We will be watching their buildup carefully, see how they spend this money, see if it in any way is threatening to our interests in our region or whether it's just modernization, because they need modernization.
Taiwan situation
"We will also be especially sensitive to how this buildup relates to its situation to Taiwan, whether it presents any new threat to Taiwan, and we'll look at that carefully."
A US official said earlier that Washington was concerned at the increase in the defense budget and would continue to sell Taiwan enough weapons for the country to defend itself.
The official, who asked not to be named, also said Washington would continue to talk to Beijing about reports that Chinese technicians are helping Iraq install an optical-fiber communications system with military implications.
"We monitor very closely the PRC [People's Republic of China] military. We are concerned about this trend," he said.
"The key, though, will be Chinese policies and actions. Greater transparency in China's military budget process and its policy priorities could usefully serve the interest of peace and security in the region," the official added.
Powell said that in imminent talks with the Chinese the US would ask China to be more open about military spending "so that we can see this for what it is."
Chinese Vice Premier Qian Qichen (
Defensive buildup?
"Is it just a defensive buildup on their part? Is it just a modernization? Does it have some offensive potential? All of these are questions I think we should ask the Chinese but I'm not prepared to say this creates a new system or a new state of conflict," Powell added.
On the optical-fiber allegations, Chinese Foreign Minister Tang Jiaxuan (
The work would probably be in violation of the UN sanctions imposed on Iraq since 1990.
The US official said: "We have made our views and concerns clear to the Chinese government, which understands that failure to resolve this issue through ongoing efforts will damage Sino-US relations.
"The Chinese government has reiterated its understanding of China's responsibilities to uphold UN Security Council resolutions and to ensure that Chinese companies abide by these resolutions. We will continue to work with the Chinese government to address this issue," he added.
US President George W. Bush must decide in April how to respond to a shopping list of high-technology weaponry requested by Taiwan, including the AEGIS and Patriot missile defense systems.
The US official declined to say whether Washington was inclined to sell the weaponry. "We will continue to fulfill our obligations to provide defense articles and services to enable Taiwan to maintain sufficient capability to defend itself in accordance with long-standing policy and practice," he added.
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