Chinese Foreign Minister Li Zhaoxing and US Secretary of State Colin Powell Monday held talks, exchanging views on issues of Taiwan, anti-terrorism, Iraq as well as the nuclear issue of the Korean Peninsula.

The Taiwan issue is always the biggest factor affecting the stable development of Sino-US relations, said Li, attributing the current severe situation across the Taiwan Straits to the gradual escalation of Chen Shui-bian's Taiwan independence separatist moves.

Li expressed hope that the United States will implement relevant promises and not break the one-China policy and the three joint communiques between China and the United States.

"This is vital for safeguarding the peace and stability in the Taiwan Straits region as well as the development of Sino-US relations," he said.

The bilateral relations are at a crucial stage, said he, hoping the two sides will enhance dialogue and cooperation and handle properly the disputes so as to push forward the Sino-US constructive relations of cooperation.

Powell spoke highly of the US-Sino relations in recent four years. The US Administration valued the relations with China, because they directly influenced the stability in Asia and the world, he said.

The US Administration will continue to stick to the one-China policy on the basis of the US-Sino three joint communiques, and oppose any Taiwan authorities' effort aiming at Taiwan independence, he said.

Powell arrived in Beijing on Sunday for a two-day visit to China.

Chinese Foreign Minister Li Zhaoxing (2nd L) holds talks with visiting United States Secretary of State Colin Powell (3rd R) in Beijing, Oct. 25, 2004.

Chinese Foreign Minister Li Zhaoxing (R) meets with visiting Untied States Secretary of State Colin Powell in Beijing, Oct. 25, 2004.