The US Ambassador to China has expressed his optimism for Sino-US relations in a lecture to Tsinghua University students. But he tried to avoid commenting on the recent spats between China and the US on Yuan appreciation.

Jon Huntsman said there is no bilateral relationship in the world today more important than the one between China and the United States. He touched briefly on some of the issues that have caused recent tensions.

Jon Huntsman, US Ambassador to China, said, "The year of the tiger, is likely to be the most important year in the 30 year diplomatic history between the United States and China. This is not because the arms sales to Taiwan and the president's meeting with Dalai Lama. We've had and managed these differences in the past thirty years. and at the same time, we've been able to develop a broad and prosperous relationship."

The two issues mentioned by the ambassador are in fact the major issues causing tensions in bilateral relationships over the last two months.

China is strongly opposed to recent moves by the US that have undermined China's core interests and the overall interests of bilateral ties. China is calling for joint efforts to promote a return to sound relations.

The ambassador also addressed US allegations about the yuan-dollar exchange rate.

Mr. Huntsman said, "We will let the rival parties to discuss the issue in the weeks ahead...there will be a resolution to the satisfaction of both parties."

The ambassador later answered a few questions from the students.