President Bush said he was honored by this reception at Tsinghua, one of China's great universities.

"The standards and reputation of this university are known around the world," he said.

In the speech, President Bush talked about Sino-US relations. He said: "We see a China that is becoming one of the most dynamic and creative societies in the world. China is on a rising path, and America welcomes the emergence of a strong, peaceful and prosperous China."

President Bush devoted much of his speech to give a clear picture of the United States. "My country certainly has its share of problems and faults; like most nations, we're on a long journey toward achieving our own ideals of equality and justice," he said referring to the American values.

When recalling his visit to China in 1975, he said, a lot has changed in the country since then, and this progress is a strong indication of China's great potential.

"Behind China's economic success today are talented, energetic people. In the near future, these same men and women will play a full and active role in your government. They are not spectators but participants in its future," Bush told to Tsinghua students.

President Bush also touched on the importance of strong family, faith and tolerance.

President Bush answered six questions raised by Tsinghua students after his speech.

Bush responded to two questions on Taiwan issue. The US president was aware that this issue was of great concern to Chinese students. He reiterated that the US government's policy on Taiwan issue has never changed, and he used the words "peaceful resolution" to describe his hope of the reunification issue.

When asked by a female student if he would like to encourage his twin daughters to study in Tsinghua, President Bush said that he did hope they would come here. He said he thought that the exchange of students between the two countries is necessary, and the United States welcomes Chinese students to study in America. That would not only benefit Chinese students, but also American students, he emphasized.

The President stressed the value of family, noting that both countries share a strong tradition of honoring the family.

President Bush is on the second day of a two-day working visit to China.

Nearly 100 Chinese and foreign reporters gathered at the hall of the main building of Tsinghua University to cover President Bush's Tsinghua visit.

More than 300 Tsinghua students and faculty members attended the meeting.

Tsinghua president Wang Dazhong hosted the meeting and extended his warm welcome to President Bush.

Chinese Vice President Mr. Hu Jintao met with President Bush at Tsinghua University before Bush's speech. Vice-President Hu said in his remarks that young people are the hope of the country, the future of the world and the fresh force pushing forward Sino-U.S. friendship.

"I hope young people in the two countries will increase exchanges, enhance friendship, learn from each other, and work together to promote peace, progress and development of the world," Hu said.

Vice-President Hu graduated from Tsinghua University in the 1960s. He said that Tsinghua is a prestigious institution of higher learning with a long history. He said he was happy to be back of his alma mater and join the teachers and students of Tsinghua in welcoming President Bush.