Jiang: US ties improving

Beijing desperately wants to host the 2008 Olympics

Chinese President Jiang Zemin has expressed optimism about the future of US-China relations, telling Russian media on Tuesday that ties were improving.

President Jiang: "Common interests" with US

He said relations between the two countries had "lived through a difficult period recently."

It was an apparent reference to the row over a US spy plane that collided with a Chinese fighter jet earlier this year, killing a Chinese pilot.

The Chinese leader was speaking ahead of a 10-day trip to Russia, Belarus, Ukraine and Moldova due to begin on Sunday.

He was also speaking ahead of a decision on Friday over which city will host the 2008 Olympics. Beijing is considered the favourite to win.

Tricky diplomacy

The spy plane row began on 1 April when the US spy plane was forced to make an emergency landing on the southern Chinese island of Hainan, following the collision. China was angry at its pilot's death and because the US had been monitoring Chinese intelligence.

Beijing's Olympic bid

Population: 12m

Previous Olympics: none

Bidding record: Lost to Sydney last time

Hosted: 1990 Asian Games

The bid: $20bn facelift planned

The US crew was detained on the island for 11 days, during a tense stand-off. The US eventually said it was "very sorry" and the crew was released. China later allowed the dismantled plane to be flown out in pieces.

"That situation was bad both for China and the United States, which we would like to avoid," Mr Jiang told the Russian news agency ITAR-Tass.

Beijing has promised a $20bn facelift

Speaking also to the state-controlled ORT television network, he said: "In spite of some differences, China and the United States have common interests."

He said recent contacts between the two countries had shown "positive changes" and allowed him to be "optimistic about the future".

In a sign that tensions may be decreasing, China has allowed a two US warships to dock in Hong Kong, reversing a two-year stance.

Analysts say the Chinese moves could be linked to the International Olympic Committee session taking place in Moscow this week. Beijing, Toronto and Paris are the three main contenders, and China is anxious not to jeopardise its chances before Friday's announcement.

It missed out by just two votes in the 1993 bidding to host the 2000 Olympics.