SPIEGEL:

This week Chancellor Gerhard Schröder is visiting your country for the fifth time. No other Western head of state has been here this many times. What is your view of the Germans' interest?

Li: We have certainly noticed that in recent times the German government has repeatedly pushed for democratization of international relations. They want multilateral action to replace unilateral action. We welcome the Germans' efforts to strengthen the leadership role taken by the United Nations. Such common goals are the basis for our close cooperation.

SPIEGEL: The German economy appears to be benefiting from these favorable political relations.

Li: In terms of the truly central issues - whether all countries obey the rules of the World Trade Organization, whether they eliminate import restrictions, and whether China is allowed the status of a free market economy - the Germans have behaved more cleverly than others. That's why trade relations have developed in an especially positive direction this year. By October, trade volume had increased to 33.5 billion Euros, a 49 percent increase over the previous year. If German companies take advantage of opportunities in China, both sides can benefit. However, I have heard that business negotiations with the Germans are especially difficult.

SPIEGEL: They claim that the opposite is the case.

Li: One thing is certain: When agreements are concluded, we can assume that they will be upheld. Furthermore, German products are usually of the highest quality. Your companies resemble the German national soccer team in this regard. It may not play very beautifully and is sometimes not the fastest, but it is always effective...

SPIEGEL: ... but not even that at this point, unfortunately.

Li: We must look to the future. Beijing is preparing for the 2008 Olympic Games, and many projects are being contracted out internationally. Naturally, German companies must expect a great deal of competition. Not only do we wish to see their athletes win medals, but would also like to see contracts awarded to German businesses.

SPIEGEL: The United States, which you accuse of having hegemonic intentions, established new military bases in Central Asia after September 11, 2001. They also improved their relations with China's neighbors, India and Pakistan. Are you concerned about this?

Li: We have accepted the American assurances that they do not intend to maintain a permanent military presence in Central Asia. We welcome improved relations with the South Asian countries, because they can promote peace and stability in the entire region.

SPIEGEL: You yourself are trying to achieve a better relationship with Washington.

Li: The fact is that both countries have far-reaching mutual interests. However, I cannot deny that differences of opinion do exist.

SPIEGEL: Many countries are currently being shaken by terrorist attacks. Is China at risk?

Li: We see terrorism as one of the principal threats on peace and stability. Helping others in this regard is a form of self-help. We must expect that there will be bloody attacks for a long time. We can only protect ourselves against this threat on an international level. Unilateral action will not work.

SPIEGEL: Your government has been accused of using this fight as an excuse to persecute the Muslim Uigurs.

Li: That is an unfounded and irresponsible claim. The policy of the central government in the autonomous region of Xinjiang is supported by all ethnic groups, including the Uigurs. No sovereign country can tolerate separatist activities without taking action. We very much look forward to the UN classifying the so-called East Turkestan Islamic Movement as a terrorist organization.

SPIEGEL: Following the military intervention in Iraq, the United States is now experiencing considerable difficulties, and the number of its victims is rising daily. Can China contribute to improving the situation?

Li: China, together with the international community and Germany, attempted to prevent the war before it began. In the current situation, we emphasize the authority of the United Nations and the interests of the Iraqi people. The UN must play a comprehensive role in the reconstruction of Iraq. We would like to see the Iraqis become sovereign again and elect their own government as quickly as possible.

SPIEGEL: Another crisis region is in your immediate neighborhood: North Korea. Where do you see possibilities for compromise in achieving a peaceful solution to the dispute surrounding Pyongyang's nuclear program?

Li: We have no idea whether the North Koreans do in fact have nuclear weapons at this point. To resolve this conflict peacefully, all affected parties must continue the negotiations. On the one hand, we must keep the Korean peninsula free of nuclear weapons. On the other, we must also respect North Korea's rightful security needs. Both are indispensable.

SPIEGEL: How much influence does Beijing have on its friends in Pyongyang?

Li: Our principal role is to convince the affected parties to preserve peace and to resume negotiations. We are trying to find positions in which North Korea and the United States agree. This is in the ultimate interest of all affected parties, but it is also a tedious process. We need time, patience and intelligence. Otherwise there will be a catastrophe with inconceivable consequences - not just for the region, but for the entire world.

SPIEGEL: You consistently stress how important peace and stability are for China's development. How do the most recent threatening tones from Beijing vis-à-vis Taiwan fit into this figure?

Li: I don't know how you gain the impression that the tones are now louder. The issue is very simple: There is only one China in the world, and Taiwan is a part of it. The Chinese central government is trying to resolve the Taiwan question peacefully based on the principle of "one country - two systems," and that is where things will remain.

SPIEGEL: But your government has threatened a military attack if the Taiwanese dare to organize a referendum on their independence. If a war were to break out, this would jeopardize the Olympic Games in Beijing. Is this something you want to risk?

Li: I am not skeptical at all in this regard. The games will be very successful. I do not believe that anyone is capable of preventing the games, not even Mr. Chen Shui-bian...

SPIEGEL: ... the Taiwanese president.

Li: If someone is foolish enough to attempt this, he will not fare well. The Taiwanese independence movement under Chen Shui-bian has taken a very dangerous course. They wish to split Taiwan from the mother country. We cannot permit them to be successful in this endeavor.

SPIEGEL: How do you intend to prevent this?

Li: We will not shy away from anything. We possess the necessary capabilities to guarantee sovereignty and territorial integrity, and we have the confidence to use these capabilities. The United Nations and all peace-loving countries on this earth are on our side. Our German friends have also consistently supported us on this question, something for which we are very grateful.

SPIEGEL: About 450 million people live in the European Union, 288 million in the United States, and almost 1.3 billion in China. Will the balance of power in the world change one day to reflect these numbers?

Li: China's current development is certainly also an important contribution to the development of all mankind. About 20 percent of the world's population lives in China. Short-sighted politicians in the West see this development as a threat, but they do so erroneously. Many years ago, Comrade Deng Xiaoping said that the greatest threat to the world would be if China were not to develop. If that were the case, companies from all over the world would not be able to take advantage of the opportunities in our market. Last year, some US companies achieved greater profits in China than at home. Nevertheless, the People's Republic is still a developing country, and it will remain that way for a very long time.

SPIEGEL: That seems difficult to believe when one drives through the urban centers of cities like Shanghai, Canton or Beijing.

Li: After 25 years of policies of openness and reform, China does enjoy a high rate of economic growth. Based on per capita income, however, we are still a poor country. China has about sixteen times as many inhabitants as Germany. But your gross domestic product is almost twice as high as that of China.

SPIEGEL: The pace of economic reform has made a very strong impression in the countries of the West. Isn't it necessary to follow up with political reforms very quickly?

Li: I expected you to ask this question. We have suffered from foreign aggression since the opium wars about 150 years ago. At that time, hundreds of millions of Chinese fought for democracy and the protection of human rights. No other country values democracy and human rights as much as we do.

SPIEGEL: Nevertheless, isn't it time for China to move in the direction of political openness?

Li: You are completely correct, at least in principle. Political reforms must follow economic reforms. But he have long since begun putting them into practice. Otherwise, the creativity and innovative capacity of modern China would be inconceivable.

SPIEGEL: Have we missed something?

Li: Take the farmers, for example, who are now permitted to elect their village chairmen themselves. We do not believe that China has already reached the pinnacle of this development. There are many things we should improve, both in politics and the economy.

SPIEGEL: The Chinese can buy American hamburgers, German BMWs and French cognac. When will they be able to buy the New York Times at newsstands or visit the BBC's website on the internet?

Li: Nowadays the Chinese have more and more ways to obtain information. The internet is developing dynamically. 70 million people are already using it. It has many positive effects, such as for the economy. But it also has unhealthy contents. Some people advertise heretical sects and disseminate false news. There is obscenity, pornography and violence. Many countries, including China, have recognized the serious nature of this problem and are searching for solutions that make sense.

SPIEGEL: Is it even possible for a country that is now virtually capitalist to be governed by a communist single-party system?

Li: You cannot reduce Chinese politics to a single-party system. The Communist Party of China is the ruling party because this reflects the wishes of the Chinese. We also have eight democratic parties that are involved in government policy.

SPIEGEL: When the German Democratic Republic still existed, those kinds of parties were referred to as recorder flutes.

Li: Western politicians always make the mistake of believing that the whole world should be just like their country. They believe that other countries' systems are wrong. But every child knows that the world is a big place and that it accommodates different cultures. We are amazed by politicians who advocate democracy at home, but forget their democratic principles when dealing with international relations.

SPIEGEL: Mr. Foreign Minister, thank you for the interview.

The interview was conducted by editors Stefan Aust, Hans Hoyng and Andreas Lorenz at the Foreign Ministry in Beijing.

Translated by Christopher Sultan