They are focusing on the concept of the 'peaceful emergence' of China articulated by a team of international affairs strategists. This emphasises China's willingness to abide by international rules and norms, making its foreign policy decisions more transparent and acknowledging the supremacy of the US in world affairs.

The Sars outbreak presented the new leadership with the challenge of controlling a health bombshell that knew no borders.

After the initial cover-up, China worked closely with the World Health Organisation and shared health information with Asean countries.

In retrospect, the response triggered by the battle to contain the outbreak helped the new leaders to stamp their personal mark on diplomatic style, said Pang Zhongying, professor of international politics at Nankai University.

'Active participation in a new multilateral setting, especially in the non-conventional areas, gave the leaders a new understanding of the interconnected world,' he said.

The thrust to work within a multilateral framework has resulted in strengthened ties with Asean countries and the European Union.

The six-party talks to resolve the nuclear crisis on the Korean peninsula was another example of the preference for a multilateral approach to finding a collective guarantee and sharing responsibilities in high-risk situations, he added.

Compared with its progress in dealing with regional and multilateral groups, China had a mixed year in more traditional bilateral relations, foreign relations experts said.

On the positive side, the remarkable rapprochement with India culminated in Prime Minister Atal Behari Vajpayee's visit to Beijing and the first Sino-Indian joint naval exercises.

Beijing improved relations with New Delhi and kept Pakistan satisfied by maintaining traditional close ties.

China managed to keep its relations with the US on an even keel, carefully limiting involvement in the US-led war on Iraq.

During Mr Wen's visit to the US, the Bush administration affirmed the one-China principle. But the Taiwan issue will remain a stumbling block in Sino-American relations if candidates in next March's presidential election in Taiwan decide to push a referendum on the island's defence.

Last month, Taiwan's legislature passed a bill making it possible to call a referendum if the island is threatened by external force. Mr Wen warned that Beijing would 'pay any price' to safeguard national unity.

China's relations with Japan remained adrift over Prime Minister Junichiro Koizumi's visit to the Yasukuni shrine honouring Japan's war dead. The controversy soured the commemoration of the 25th anniversary of the Sino-Japanese Friendship Treaty.

Mr Koizumi's visit to the shrine yesterday, his fourth since 2001, will surely further dampen relations between the two sides.

Influenced by Japanese government lobbying, Russia shifted its position on building an oil pipeline, originally planned to connect the oilfield in Angarsk, western Siberia, to Daqing in northeastern China. Now the pipeline will go from Angarsk to Russia's Pacific port of Nakhodka.

The about-face reflected a strategic calculation on the part of the Russian government of possibly downgrading relations with China.

The ups and downs of bilateral relations with major powers notwithstanding, Chinese analysts emphasised that 'peaceful emergence' had become a coherent theory guiding the conduct of its foreign relations, said Niu Jun, professor of international politics at Peking University.

In 20 years of reform and opening, China had benefited from the international system of free trade, and the leadership was committed to the country's integration in the global order, he said.

The formulation of 'peaceful emergence' is credited to a group of international affairs strategists led by Zheng Bijian, former vice-director of the Central Chinese Communist Party School.

Mr Zheng was regarded as an influence on Mr Hu, who served as director of the party school until becoming the party's general secretary.

Mr Hu carried the message to world leaders in St Petersburg, Russia, and Evian, France, in May and again at the Apec meeting in Bangkok in October.

Mr Wen also repeated the main points of 'peaceful emergence' in a speech at Harvard University in the United States.

In a nutshell, under 'peaceful emergence' the goal of China's foreign policy is to foster a favourable environment for the nation to pursue its economic development for the next 20 years.

The less confrontational and more constructive style, however, will face a severe test if the Taiwan issue comes to a head.

'The US and Taiwan are quasi-allies, and China will not yield on the sovereignty issue,' said a former Chinese diplomat.

'The conflict [would be difficult] to avoid.'