5th China-US SED kicks off in Beijing

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The Vice Premier says China's efforts to maintain fast and stable growth contribute to restoring global financial stability.

Chinese Vice Premier Wang Qishan, as special representative  of president of China, addresses the opening ceremony of  the Fifth China-US Strategic Economic Dialogue in Beijing,  capital of China, Dec. 4, 2008.(Xinhua Photo)

US Treasury Secretary, Henry Paulson, says fostering direct engagement with China through the dialogue mechanism is key.

US Treasury Secretary Henry Paulson said, "We have learned that engagement works, that engagement can help achieve meaningful, tangible results that would not have been possible otherwise. Engagement has helped us manage the current financial market crisis and we appreciate the responsible role China has played during the turmoil."

During the two-day meeting, China and the US will also discuss issues including open trade and investment, product safety, as well as strengthening the global economic system.

The two sides are also expected to reach substantive agreements on energy and environment cooperation, under a Ten Year Framework signed in June in the United States.

Talks this time take place against the backdrop of a world economy in crisis, and a US administration that's due to change in a matter of weeks. For these reasons, analysts say both sides are likely to steer clear of the usual thorny issues, such as speeding up appreciation in China's currency. Instead, what is likely to take center-stage is how they must work together to tackle what could be a deep and painful slowdown.