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DATE=9/2/2000 TYPE=CORRESPONDENT REPORT TITLE=CHINA-MISSILE REACT (L-ONLY) NUMBER=2-266079 BYLINE=LETA HONG FINCHER DATELINE=BEIJING CONTENT= VOICED AT: INTRO: China has welcomed U-S President Bill Clinton's decision not to deploy an anti-missile defense system, saying that the decision will help world peace. Beijing Correspondent Leta Hong Fincher reports. TEXT: China's Foreign Ministry Spokesman, Zhu Bangzao, says President Clinton's decision on the U-S National Missile Defense system is what he calls "rational". In a statement carried by China's state-run Xinhua News Agency, Mr. Zhu said maintaining global strategic stability and security will help the cause of world peace and international disarmament. Mr. Zhu also said China hopes the U-S government will consult more with other countries on the matter, in order to make a decision that will serve the interests of nations all over the world. Beijing strongly opposes the proposed missile shield, fearing that it would set off a global arms race and undermine China's own limited nuclear deterrent. Beijing is especially concerned about the related Theatre Missile Defense system for Asia, or TMD, which Washington says would protect U-S troops from a possible North Korean missile threat. China fears the TMD would be extended to defend Taiwan, which China considers a breakaway province. China reserves the right to use military force to recover Taiwan if it declares independence or drags its feet on reunification.(Signed) NEB/LHF/PFH 02-Sep-2000 08:15 AM EDT (02-Sep-2000 1215 UTC) NNNN Source: Voice of America .