China talks tough to U.S. over Iraq, Taiwan

China has announced an increase in its defense budget to a record $17 billion

BEIJING, China -- China has sent a strong message to the United States, denying vehemently that it is helping Iraq rebuild it's military infrastructure and also warning Washington to stop selling advanced arms to Taiwan.

China's Foreign Minister Tang Jiaxuan said Beijing had carried out a thorough internal investigation which proved U.S. claims that it was supplying Iraq were false.

"The result is that Chinese enterprises and corporations have not assisted Iraq in building the fiber-optic cable project used for air defense," Tang told a news conference in Beijing Tuesday.

He repeated Chinese accusations that the allegations were designated to divert attention from U.S. and British air-strikes against Iraq last month.

"China has regulations that prohibit any company to go against the U.N. resolutions. So indeed, we in China have been very serious and responsible on this question, and we have a very good track record in the U.N.," Tang said.

China promised on February 28 to look into the U.S. charges after it had originally denied the claims.

The United States and Britain launched two air raids on six Iraqi military bases in February to destroy Iraqi air defense systems which the Pentagon said were being upgraded to pose a threat to U.S aircraft patrolling no-fly zones.

Pentagon officials have privately claimed that the raids were timed over the weekend to avoid killing Chinese technicians who were helping Iraq lay fiber-optic cables to link Iraqi radars to anti-missile sites.

Tang Jiaxuan reiterates China's message against potential U.S. arms sales to Taiwan

Analysts say that Beijing wanted to sweep the issue under the carpet while it wants to focus on persuading the United States not to sell advanced weapons to Taiwan.

The Bush Administration must make a decision in April on a new high-tech shopping list of defense items drawn up by Taiwan, including an Aegis missile destroyer and the Patriot (PAC3) anti-missile defense system.

Speaking on the second day of the National People's Congress, Tang also urged the U.S. not to sell Taiwan four Kidd-class destroyers that were decommissioned by the U.S. Navy, warning it would dampen the Sino-U.S. relations and increase tension in the Taiwan Strait.

"I would hope the U.S.-side will come to a sober-minded understanding of the serious dangers involved," Tang said, confirming that vice premier Qian Qichen would bring up the Taiwan issue when a visit to the U.S. in late March.

The United States is bound by the Taiwan Relations Act to sell the island weapons sufficient for its defense.

But in recent years, Washington has declined or deferred Taiwan's requests for submarines and destroyers, fearing the sales would provoke an arms race with China.

Beijing also announced Tuesday to increase its defense budget by 17.7 percent to a record $17 billion this year. Tang said it was only five percent of the U.S. annual defense expenditure.

The Associated Press & Reuters contributed to this report.

China denies role in Iraq

Chinese Foreign Ministry
U.S. Defense Department

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