After repeatedly and bitterly criticising the United States and its allies over the NATO bombing of the Chinese embassy in Belgrade, a People's Daily editorial said: "China is ready to establish cooperative relations with them."

Following the May 7 bombing, which NATO leaders have insisted was a "tragic mistake," China ended military contacts with the United States but has maintained economic links as it seeks progress in its bid to join the World Trade Organisation.

Relations fell to a new low last week after a Congress report accused China of stealing US nuclear secrets for the past two decades. But the People's Daily was surprisingly conciliatory.

"Upholding the independent foreign policy of peace also covers promoting friendly cooperation with Western countries including the United States," said theeditorial in the Communist Party mouthpiece.

"So long as they are willing to implement the five principles of peaceful coexistence, China is ready to establish cooperative relations with them in various fields."

The `five principles' were established by communist China in the 1950s as the basis of its diplomatic policy. The principles include non-interference in the internal affairs of sovereign nations.

The People's Daily acknowledged problems with the United States over the year. "The development trend of the Sino-US relations is of great importance to the whole world," said the editorial.

"Though the improvement and development of the Sino-US ties has experienced ups and downs and there are anti-China forces in the United States, the vast majority of the American people believe in having friendly ties with China."

Since the embassy bombing, which killed three Chinese journalists, Beijing editorials have been full of attacks on US hegemony and the "barbarism" of the US-led NATO attacks onYugoslavia.

The latest editorial insisted "China will oppose hegemonism while promoting ties with the United States and this act indicates China's firm stance, its flexibility in handling foreign affairs as well as its maturity and confidence in its relations with other countries".