The world's attention is focused on the development of China's ties with the United States now that Washington is taking Beijing's increasing influence more seriously.

Observers across the world have been trying to judge or influence decision-makers in Beijing and Washington in different ways. But despite their obvious differences "China hawks" and "panda huggers" both seem to agree that Sino-US relations have transcended the boundaries of bilateral ties and become globally important.

President Hu Jintao's upcoming visit to the US in January will offer international observers a good opportunity to examine how the leaders of the two important countries review the past, chart the future and come up with better solutions to many of the world's gnawing problems.

The passing year has been eventful for Beijing and Washington both. In the first quarter, Washington's multi-billion-dollar arms sales to Taiwan and Google's exit from the Chinese market harmed bilateral ties.

US charges that the yuan is undervalued and its joint military drills with the Republic of Korea (ROK) dealt further blows to Sino-American ties. As 2010 passes into history, the world is beset with worries over the unwanted developments on the Korean Peninsula.

But despite their differences, Beijing and Washington are gingerly nourishing a harmonious environment to pave the way for Hu's visit. These are indications that cooperation and confrontation co-exist in Sino-US relations. But they also prove that the two countries now act more maturely to increase mutual benefits and keep their differences at bay.

Apart from straightening things out at the bilateral level, President Hu and US President Barack Obama will be tested for their ability to steer Northeast Asia out of troubled waters. China and the US both are keen on defusing tensions on the Korean Peninsula.

Although many in the international community assume that China has a traditional influence over the Democratic People's Republic of Korea (DPRK), China has always taken an impartial stance in any dispute between the DPRK and the ROK.

Even though the US has consolidated its traditional ties with the ROK this year and backed Seoul's show of strength against Pyongyang, raising tensions on the Korean Peninsula will not be in Washington's interest, let alone help it play a bigger role in Asia. The US should know that the ROK may lose its moral high ground if it continues with its hard-line stance against the DPRK, especially because the latter has shown obvious signs of backing off.

Facts, including two-way trade figures and personnel exchanges, reflect that relations between China and the US - despite the confrontations - are at their strongest. The two countries can increase mutual benefits and contribute more to world peace and stability if they respect each other's core interests, intensify their cooperation and reduce confrontations.

(China Daily 12/25/2010 page5)