I. The Security Situation

With the advent of the new century, the world is undergoing tremendous changes and adjustments. Peace and development remain the principal themes of the times, and the pursuit of peace, development and cooperation has become an irresistible trend of the times. However, global challenges are on the increase, and new security threats keep emerging.

Economic globalization and world multi-polarization are gaining momentum. The progress toward industrialization and informationization throughout the globe is accelerating and economic cooperation is in full swing, leading to increasing economic interdependence, interconnectivity and interactivity among countries. The rise and decline of international strategic forces is quickening, major powers are stepping up their efforts to cooperate with each other and draw on each other's strengths. They continue to compete with and hold each other in check, and groups of new emerging developing powers are arising. Therefore, a profound readjustment is brewing in the international system. In addition, factors conducive to maintaining peace and containing war are on the rise, and the common interests of countries in the security field have increased, and their willingness to cooperate is enhanced, thereby keeping low the risk of worldwide, all-out and large-scale wars for a relatively long period of time.

World peace and development are faced with multiple difficulties and challenges. Struggles for strategic resources, strategic locations and strategic dominance have intensified. Meanwhile, hegemonism and power politics still exist, regional turmoil keeps spilling over, hotspot issues are increasing, and local conflicts and wars keep emerging. The impact of the financial crisis triggered by the US subprime mortgage crisis is snowballing. In the aspect of world economic development, issues such as energy and food are becoming more serious, highlighting deep-seated contradictions. Economic risks are manifesting a more interconnected, systematic and global nature. Issues such as terrorism, environmental disasters, climate change, serious epidemics, transnational crime and pirates are becoming increasingly prominent.

The influence of military security factors on international relations is mounting. Driven by competition in overall national strength and the development of science and technology, international military competition is becoming increasingly intense, and the worldwide revolution in military affairs (RMA) is reaching a new stage of development. Some major powers are realigning their security and military strategies, increasing their defense investment, speeding up the transformation of armed forces, and developing advanced military technology, weapons and equipment. Strategic nuclear forces, military astronautics, missile defense systems, and global and battlefield reconnaissance and surveillance have become top priorities in their efforts to strengthen armed forces. Some developing countries are also actively seeking to acquire advanced weapons and equipment to increase their military power. All countries are attaching more importance to supporting diplomatic struggles with military means. As a result, arms races in some regions are heating up, posing grave challenges to the international arms control and non-proliferation regime.

The Asia-Pacific security situation is stable on the whole. The regional economy is brimming with vigor, mechanisms for regional and sub-regional economic and security cooperation maintain their development momentum, and it has become the policy orientation of all countries to settle differences and hotspot issues peacefully through dialogue. The member states of the Shanghai Cooperation Organization (SCO) have signed theTreaty on Long-Term Good-Neighborly Relations, Friendship and Cooperation, and practical cooperation has made progress in such fields as security and economy. The conclusion of theASEAN Charterhas enabled a new step to be taken toward ASEAN integration. Remarkable achievements have been made in cooperation between China and ASEAN, as well as between ASEAN and China, Japan and the Republic of Korea. Cooperation within the framework of the East Asia Summit (EAS) and the South Asian Association for Regional Cooperation (SAARC) continues to make progress. The Six-Party Talks on the Korean nuclear issue have scored successive achievements, and the tension in Northeast Asia is much released.

However, there still exist many factors of uncertainty in Asia-Pacific security. The drastic fluctuations in the world economy impact heavily on regional economic development, and political turbulence persists in some countries undergoing economic and social transition. Ethnic and religious discords, and conflicting claims over territorial and maritime rights and interests remain serious, regional hotspots are complex. At the same time, the US has increased its strategic attention to and input in the Asia-Pacific region, further consolidating its military alliances, adjusting its military deployment and enhancing its military capabilities. In addition, terrorist, separatist and extremist forces are running rampant, and non-traditional security issues such as serious natural disasters crop up frequently. The mechanisms for security cooperation between countries and regions are yet to be enhanced, and the capability for coping with regional security threats in a coordinated way has to be improved.

China's security situation has improved steadily. The achievements made in China's modernization drive have drawn worldwide attention. China's overall national strength has increased substantially, its people's living standards have kept improving, the society remains stable and unified, and the capability for upholding national security has been further enhanced. The attempts of the separatist forces for "Taiwan independence" to seek "de jureTaiwan independence" have been thwarted, and the situation across the Taiwan Straits has taken a significantly positive turn. The two sides have resumed and made progress in consultations on the common political basis of the "1992 Consensus," and consequently cross-Straits relations have improved. Meanwhile, China has made steady progress in its relations with the developed countries, strengthened in all respects the good-neighborly friendship with its neighboring countries, and kept deepening its traditional friendship with the developing countries. China is playing an active and constructive role in multilateral affairs, thus notably elevating its international position and influence.

China is still confronted with long-term, complicated, and diverse security threats and challenges. Issues of existence security and development security, traditional security threats and non-traditional security threats, and domestic security and international security are interwoven and interactive. China is faced with the superiority of the developed countries in economy, science and technology, as well as military affairs. It also faces strategic maneuvers and containment from the outside while having to face disruption and sabotage by separatist and hostile forces from the inside. Being in a stage of economic and social transition, China is encountering many new circumstances and new issues in maintaining social stability. Separatist forces working for "Taiwan independence," "East Turkistan independence" and "Tibet independence" pose threats to China's unity and security. Damages caused by non-traditional security threats like terrorism, natural disasters, economic insecurity, and information insecurity are on the rise. Impact of uncertainties and destabilizing factors in China's outside security environment on national security and development is growing. In particular, the United States continues to sell arms to Taiwan in violation of the principles established in the three Sino-US joint communiqués, causing serious harm to Sino-US relations as well as peace and stability across the Taiwan Straits.

In the face of unprecedented opportunities and challenges, China will hold high the banner of peace, development and cooperation, persist in taking the road of peaceful development, pursue the opening-up strategy of mutual benefit, and promote the building of a harmonious world with enduring peace and common prosperity; and it will persist in implementing the Scientific Outlook on Development in a bid to achieve integration of development with security, persist in giving due consideration to both traditional and non-traditional security issues, enhancing national strategic capabilities, and perfecting the national emergency management system. At the same time, it will persist in pursuing the new security concept featuring mutual trust, mutual benefit, equality and coordination, and advocating the settlement of international disputes and hotspot issues by peaceful means. It will encourage the advancement of security dialogues and cooperation with other countries, oppose the enlargement of military alliances, and acts of aggression and expansion. China will never seek hegemony or engage in military expansion now or in the future, no matter how developed it becomes.