This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8169869.stm

The article has changed 9 times. There is an RSS feed of changes available.

Version 5 Version 6
China-US economic talks kick off China-US economic talks kick off
(40 minutes later)
Top leaders of the US and China are meeting in Washington to discuss key economic and political differences.Top leaders of the US and China are meeting in Washington to discuss key economic and political differences.
President Obama said the relationship between the US and China would shape the 21st century and said the two shared a "mutual interest".President Obama said the relationship between the US and China would shape the 21st century and said the two shared a "mutual interest".
China has sent Vice Premier Wang Qishan and State Councillor Dai Bingguo.China has sent Vice Premier Wang Qishan and State Councillor Dai Bingguo.
The meeting, called the US-China Strategic and Economic Dialogue, is the first formal negotiation between the US and China since Mr Obama took office.The meeting, called the US-China Strategic and Economic Dialogue, is the first formal negotiation between the US and China since Mr Obama took office.
The two sides have several economic and political issues. The talks will cover a range of issues, including halting the spread of nuclear weapons in North Korea and Iran, and creating clean and secure energy sources.
China is worried about the value of the US dollar. It holds huge amounts of US debt - more than $800bn (£486bn) of US Treasury securities alone. But the main focus will be on working towards economic recovery.
It fears President Obama's stimulus spending will stoke inflation in the United States, eroding the value of the dollar and making the US debt China holds worth a lot less. "The current crisis has made it clear that the choices made within our borders reverberate across the global economy - and this is true not just of New York and Seattle, but Shanghai and Shenzhen as well," President Obama said at the start of the talks.
President Obama called for cooperation between the two countries to advance their "mutual interest in lasting economic recovery". "That is why we must remain committed to strong bilateral and multilateral coordination."
US Secretary of State Hillary Clinton opened the talks with Chinese officials, hailing an opportunity for better relations between the countries. Manufacturing competition
Mrs Clinton said that the two "are laying brick by brick the foundation of a stronger relationship". At the meeting, the US will push China to rely less on exports and to focus on encouraging its domestic market.
Ties that bind KEY ISSUES Values of dollar and yuanThe US will press China to rely less on exports and more on domestic consumptionChina will push for the US to make a priority of curbing inflationBoth sides will seek reassurances over accusations of trade protectionismNorth Korea and Iran's nuclear programmesClimate change and clean energy
At these talks the US Treasury Secretary Timothy Geithner will be seeking to soothe those fears.
He has already tried to reassure the Chinese their assets will be protected.
But China is not convinced.
KEY ISSUES Values of dollar and yuanThe US will press China to rely less on exports and more on domestic consumptionChina will push for the US to make a priority of curbing inflationBoth sides will seek reassurances over accusations of trade protectionismNorth Korea's nuclear programmeClimate change and clean energy
US manufacturers complain they cannot compete fairly with their Chinese competitors.US manufacturers complain they cannot compete fairly with their Chinese competitors.
Some accuse Beijing of deliberately devaluing its currency to make its exports seem cheaper.Some accuse Beijing of deliberately devaluing its currency to make its exports seem cheaper.
China is unlikely to concede any ground on this point. GDP growth might be picking up here but the country's exporters are still struggling. But China is unlikely to concede any ground on this point, says the BBC's Chris Hogg in Shanghai.
China and the US are well aware they need each other. GDP growth might be picking up but the country's exporters are still struggling, he says.
Their economies are bound together tightly. 'No illusion'
China, meanwhile, is worried about the value of the US dollar. It holds huge amounts of US debt - more than $800bn (£486bn) of US Treasury securities alone.
It fears President Obama's stimulus spending will stoke inflation in the United States, eroding the value of the dollar and making the US debt China holds worth a lot less.
At these talks the US Treasury Secretary Timothy Geithner will be seeking to soothe those fears.
He has already tried to reassure the Chinese their assets will be protected. But China is not convinced.
China and the US are well aware they need each other. Their economies are bound together tightly.
That does not mean they always agree when it comes to trade for example - far from it - but it does mean they accept the need to sort out problems in forums like this.That does not mean they always agree when it comes to trade for example - far from it - but it does mean they accept the need to sort out problems in forums like this.
'Positive and productive' "I have no illusion that the US and China will agree on every issue," President Obama said.
Barack Obama and China's President Hu Jintao met on the sidelines of the G20 summit that was held in London in April. "But that only makes dialogue even more important."
This is the first meeting of the Strategic and Economic Dialogue group that the two leaders agreed to establish to tackle the global financial crisis and strengthen the world's financial systems.
As well as the economic talks, the meeting will address strategic subjects such as co-operation on nuclear issues concerning North Korea.
On Sunday, Secretary of State Clinton praised China for being "positive and productive" in dealing with North Korea.
"We've been extremely gratified by their forward-leaning commitment to sanctions and the private messages that they have conveyed to the North Koreans," she told US TV network NBC.