Meanwhile, complicated security factors in the Asia-Pacific region are on the increase. The United States is realigning and reinforcing its military presence in this region by buttressing military alliances and accelerating deployment of missile defense systems. Japan is stepping up its constitutional overhaul, adjusting its military and security policies and developing the missile defense system for future deployment. It has also markedly increased military activities abroad. The foundation for the Six-Party Talks is not solid enough as uncertain factors linger in the settlement of the nuclear issue on the Korean Peninsula. The threat posed by terrorism, separatism and extremism is still grave. Such transnational crimes as smuggling, piracy, drug trafficking and money laundering are rampant. Many countries are confronted with the formidable task of eliminating poverty, achieving sustainable development and enhancing security in the area of public health.

    The situation in the relations between the two sides of the Taiwan Straits is grim. The Taiwan authorities under Chen Shui-bian have recklessly challenged the status quo that both sides of the Straits belong to one and the same China, and markedly escalated the "Taiwan independence" activities designed to split China. Incessantly trumpeting their separatist claim of "one country on each side," they use referendum to engage in the separatist activities aimed at "Taiwan independence," incite hostility among the people on the island toward the mainland, and purchase large amounts of offensive weapons and equipment. They have not given up their attempt at "Taiwan independence" through the formulation of a so-called "new constitution for Taiwan." They are still waiting for the opportune moment to engineer a major "Taiwan independence" incident through the so-called "constitutional reform." The separatist activities of the "Taiwan independence" forces have increasingly become the biggest immediate threat to China's sovereignty and territorial integrity as well as peace and stability on both sides of the Taiwan Straits and the Asia-Pacific region as a whole. The United States has on many occasions reaffirmed adherence to the one China policy, observance of the three joint communiques and opposition to "Taiwan independence." However, it continues to increase, quantitatively and qualitatively, its arms sales to Taiwan, sending a wrong signal to the Taiwan authorities. The US action does not serve a stable situation across the Taiwan Straits.

    China's national security environment in this pluralistic, diversified and interdependent world has on the whole improved, but new challenges keep cropping up. The vicious rise of the "Taiwan independence" forces, the technological gap resulting from RMA, the risks and challenges caused by the development of the trends toward economic globalization, and the prolonged existence of unipolarity vis-a-vis multipolarity -- all these will have a major impact on China's security. Nevertheless, China is determined to safeguard its national sovereignty and security, no matter how the international situation may evolve, and what difficulties it may encounter, so as to join hands with the people around the world in advancing the lofty cause of peace and development for mankind.