U.S. Deputy Secretary of State Richard Armitage held talks with officials in Beijing on Monday, buoyed by China's publications of rules tightening controls on missile-related exports, a key sticking point in relations. Just hours after Armitage arrived in the Chinese capital on Sunday to prepare for a Sino-U.S. summit in October, Beijing published the regulations in an apparent signal it is serious about halting missile exports to problem states.

"The timing is aimed at improving relations and creating a better atmosphere for President Jiang Zemin's visit to the United States," said Yan Xuetong, head of the Institute of International Studies at Beijing's prestigious Tsinghua University.

"I think it will have a long-term impact," he said.

China promised Washington in November 2000 it would implement an export-control system but the United States said the promise had not been kept.

In July, the United States imposed sanctions on nine Chinese firms it accused of helping Iran -- an "axis of evil" state as defined by President Bush -- obtain weapons of mass destruction.

But analysts said China's latest gesture would not end Sino-U.S. differences over weapons proliferation.

"The problem between China and the U.S. is not these regulations. It is the definition of the countries which they should not sell their weapons to," Yan said.

He said U.S. policy meant China could not sell weapons to U.S. enemies, but Washington could sell the same weapons to China's enemies -- a reference to Taiwan, which Beijing views as a renegade province to be reunited by force if necessary.

Naji Sabri Ahmed, foreign minister of "axis of evil" nation Iraq, arrived in Shanghai for a three-day visit aimed at exchanging views on issues of common concern, state-run Xinhua said. Armitage leaves Beijing Tuesday.

TAIWAN IN FOCUS

When Bush and Jiang met in February, they failed to agree on a plan to curb the spread of weapons technology from China to "axis of evil" states Iran and North Korea and differed over human rights.

Taiwan would also be a key focus for China, which said last month it was "seriously concerned" about U.S. warming to the island and called for an end to military contacts and arms sales.

Washington plans to sell submarines and other weapons to the island and has vowed to "do whatever it takes" to defend it.

Yan said the Taiwan issue was likely to be manageable for both sides in the coming months because the island's president, Chen Shui-bian, was not expected to hold an independence referendum in his current term in office.

Chen enraged Beijing earlier this month when he said Taiwan would "ready but not use" legislation for a referendum to defend itself against China.

Despite the will to progress on differences, Jiang and Bush were unlikely to resolve many key issues in October, Yan said.

"I think this summit will just help China and the U.S to prevent some crisis from occurring within several months," he said.

"By March, the U.S. will sell new weapons to Taiwan again. Before that, I think they can keep relations relatively stable for four or five months."

PHOTO CAPTION

A hotel bell boy welcomes U.S. Deputy Secretary of State Richard Armitage in Beijing, August 25, 2002. Armitage held talks with officials in Beijing on Monday, buoyed by China's publications of rules tightening controls on missile-related exports, a key sticking point in relations. REUTERS/Gua