US President Bill Clinton lately urged US lawmakers not to overreact to China's latest rhetoric and overture towards Taiwan, saying it was no excuse for holding up a breakthrough trade agreement with Beijing.

"You have to see it in the context of the electoral politics playing out in Taiwan and not necessarily assume that some destruction, some destructive action will follow," Clinton told reporters.

"It would be a terrible mistake ... to use this as an excuse to isolate China," he added.

"I believe that if we do not do this that our country will be regretting this five, 10, 15, 20 years from now, we will be shaking our heads, saying, `What in the world got ahold of our judgment in the year 2000?'" Clinton said.

"Look, this is an economic no-brainer," Clinton said, citing China's commitment to slash tariffs and other trade barriers.

"The real issue is, from a point of view of national security, do you want them in the international system as responsible players, or do you want to say, `We don't want you in the international system until you're governed exactly the way we think you should be,'" Clinton added.

"Now, based on all your knowledge of human nature, which do you think is more likely to produce constructive partnerships and constructive conduct on the part of the Chinese?"