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China, in the future, is going to have even more nuclear capability than it has had in the past. I don't believe that they have anything to fear from the United States, and I frankly don't believe they do fear the United States.

China is a country, still, of great contrast. While hundreds of millions of people are part of the middle class and yearn for things made in America - American brands, movies, music - there are other hundreds of millions of people throughout China who are living on the equivalent of one U.S. dollar a day.

China is a developing country with a huge population, and also a developing country in a crucial stage of reform. In this context, China still faces many challenges in economic and social development. And a lot still needs to be done in China, in terms of human rights.

China is a great manufacturing center, but it's actually mostly an assembly plant. So it assembles parts and components, high technology that comes from the surrounding industrial - more advanced industrial centers - Japan, Taiwan, South Korea, Singapore, the United States, Europe - and it basically assembles them.

China is a major power in the Pacific and I think we are dealing with some common threats in that region: the whole issue of Korea and the stability of Korea, the whole issue of nuclear proliferation, the whole issue of providing free access to our ships that are operating in that area.