Taiwan key to China-US ties - official

For China, the most important issue in its relations with the United States is Tiawan. Differences on trade and economic policies, which are expected to dominate talks between Hu and President Bush, could be resolved and countered suggestions that China's rapid rise posed a threat to the rest of the world. But he reserved his strongest comments for Taiwan. The United States recognizes the "one-China" policy, but it is also the biggest arms supplier to Taiwan and has pledged to defend the island of 23 million in case of attack. The Taiwan question is the most important, most sensitive core issue in the China-U.S. relationship. Taiwan relies on the United States to work together with China to oppose and counter secessionist activities on their behalf. Taiwan opposition politicians frequently met with Chinese leaders in Beijing urging Taiwan to allow regular direct flights and expand trade. However, Taiwan president Chen Shui-bian, who advocates independence, has alarmed the mainland with moves such as shelving guidelines on eventual reunification, which Beijing sees as a steps toward formal secession. China will be seeking a clear show of support from Washington on Taiwan. The challenge is for both leaders is how can both work together to try and manage the issue should Chen try to push the relationship. Some think the ties between Beijing and Washington are one of the most important bilateral relationships in the world and differences over a ballooning trade gap and the value of China's currency could be managed. A trade delegation has so far yielded deals worth more than $16 billion also proved it is completely possible for China and the United States to properly handle trade friction. Publishing policy papers on defense and invitations to foreign military observers showed China was committed to peaceful development, Yang said.