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BEIJING, Monday (AFP)

Chinese President Jiang Zemin in his New Year address Monday said terrorism had been a serious threat to the world in the previous year and said China was willing to participate in the fight against it.

"Terrorism posed a serious threat to world peace and security this year," Jiang said in his televised speech.

"China is opposed to terrorism in any form and is willing to cooperate with other countries, and use the United Nations to the full, to join in cracking down on terrorism," he said.

Jiang also mentioned the crucial 16th Congress of the Communist Party, which is expected to take place in early fall and will likely mark the beginning of the handover of power to a new generation of leaders.

The Chinese president, however, gave no indication of the power transition expected at the congress, saying only the gathering would "clarify the targets and tasks for China's development in the new century."

Jiang is widely expected to relinquish his post as general secretary of the communist party at the congress, and step down from his post as president in early 2003.

Many observers believe he may be preparing to continue to wield influence from behind the scenes, for instance by holding on to his chairmanship of the powerful Central Military Commission.

Vice President Hu Jintao is widely tipped to take over most, if not all, of Jiang's current responsibilities.

Jiang in his address also made a short reference to Taiwan, which has been separated from the mainland for 52 years.

"In the new year, China will work toward the complete reunification of the motherland," Jiang said.

He said reunification should be brought about on the basis of the "one country, two systems" formula which has also been applied to Hong Kong.

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