The meeting in Santiago between American President George W. Bush and President Hu Jintao - the first since the former's re-election earlier this month - suggests that Sino-US relations are likely to remain stable, although the Taiwan issue remains a wild card that needs to be carefully managed by both sides.
Both leaders emerged from their weekend meeting, which lasted under an hour, talking about their intention to co-operate in the next four years. President Bush told the press that he looks forward to working closely with Mr Hu 'on keeping peace, peace on the Korean Peninsula and peace throughout the Pacific region, and to spread peace throughout the world'.
Mr Hu, on his part, noted that the two countries had made progress in co-operation in a range of areas, including the economy, trade, law enforcement and the fight against terror. Both countries, he said, 'share broad common interests' and should co-operate 'for the benefit of the two peoples and the people of the world as a whole'.
However, despite the amity, there was an undertone of disagreement on the Taiwan issue that both sides say is the most sensitive in their bilateral relationship.
The Chinese leader thanked Mr Bush for his adherence to the one-China policy and his opposition to Taiwan's independence. Curiously, however, the American leader was silent on Taiwan at a press conference held after the Bush-Hu meeting. Similarly, a White House press release on the meeting also failed to mention the Taiwan issue.
Not surprisingly, Taiwan drew comfort from this and announced that it had been briefed ahead of time on what Mr Bush would say to Mr Hu. Taiwan was upset recently because US Secretary of State Colin Powell said in Beijing that Taiwan was 'not independent' and 'does not enjoy sovereignty as a nation', adding that that remained 'our policy, our firm policy'.
Both Beijing and Taipei, therefore, are anxious to see if this 'firm policy' will remain after Mr Powell is succeeded by National Security Adviser Condoleezza Rice, who is seen in some quarters as more of a hardliner vis-a-vis China.
