``To maintain regional and global security interest of the US, the Clinton administration needs to engage and work with China, the regional heavy-weight, in safeguarding stability and security on the western side of the Pacific rim,'' the official Xinhua news agency said in an analysis of the prospects of Sino-US relations. ``The recent nuclear testing by India and Pakistan have dealt a severe blow to nuclear non-proliferation, which tops the US global security agenda in the post-cold war era,'' it says while supporting the US stand on the exclusive nature of the nuclear club.

``Destabilising elements have been on the rise on the Korean peninsula and in South-East and South Asia in recent years, posing new threats to US strategic interests in the Asia-Pacificregion,'' the agency said in a curtain-raiser ahead of President Bill Clinton's first State visit to communist China from June 25 to July 3. China and the US have been stepping up cooperation on security issues since the State visit to the US by Chinese President Jiang Zemin in October last year. Citing areas of cooperation, Xinhua pointed out the Sino-US consultation mechanism to strengthen maritime military safety agreement and the recent high-level consultation over telephone between Chinese foreign minister and US Secretary of State after India's N-tests as examples.

However, it acknowledged that areas of disagreements persist between Beijing and Washington on issues like human rights, Tibet, Taiwan, China's accession to the World Trade Organisation and trade imbalance. It said both sides have had protracted dialogues on human rights and cited Washington's decision not to co-sponsor a resolution against China at the annual UNHRC meeting in Geneva as a possible fallout.

It said despite the `anti-Chinanoises', the Clinton administration's policy of constructive engagement and dialogue with Beijing is gaining popularity in US.

``History proves that differences between nations should not prevent them from cooperating closely since they can always find out some common ground in pursuit of their own interests,'' it said adding the Sino-US relations hold bright prospects if both the nations take a ``positive, pragmatic and a rational approach in seeking common interests.''