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China's top paper says no place for a 'new cold war' with U.S.

SHANGHAI (Reuters) - China and the United States must avoid a "new cold war" in their international relations, China's top newspaper said on Saturday, in the wake of high level talks in Beijing between senior leaders of the world's two largest economies.

China and the United States agreed on Thursday to boost military ties and counter-terrorism cooperation during annual talks in Beijing, but there was little immediate sign of progress on thorny cyber-security or maritime issues.

"Both China and the United States realize that today's world has already undergone profound changes, and there is no longer a market for a "new cold war", the People's Daily, the ruling communist party's official paper, said in a commentary.

It was published under the pen name "Zhong Sheng", meaning "Voice of China", often used to give views on foreign policy.

The commentary said that the gravest risk to relations between the two countries was "misunderstanding", and called for both sides to strengthen channels of communication as they looked to shake off a "hazy" period of bilateral relations.

The U.S. Department of Justice charged a Chinese businessman on Friday with hacking into the computer system of airplane maker Boeing Co and other companies to obtain data about military projects, the latest in a string of spying allegations between the two countries.

The commentary added that complex Sino-U.S. ties were unlikely to get easier to manage any time soon. Positive steps would include boosting bilateral investment, deepening cooperation on environmental issues, strengthening military ties and making travel easier between the two countries.

"If we deal with (the relationship) well, it could benefit both sides. But if we deal with this badly, that could be a slippery slope to terrible competition and even conflict," the commentary said.

(Reporting by Adam Jourdan; Editing by Michael Perry)

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