Senior officials from the US and China have urged better co-operation between the two nations, at the start of a high-level summit. Some 200 US officials have joined Secretary of State Hillary Clinton at the talks in Beijing, aimed at improving long-term ties. Before the meeting, President Hu Jintao pledged to continue currency reform - a key sticking point between the nations. US Treasury Secretary Timothy Geithner said he welcomed Mr Hu's comments. The BBC's Michael Bristow in Beijing says there are a number of economic disagreements to iron out.
While the US has long complained about the trade deficit it has with China, he says China wants the US to lift export controls it has imposed on Beijing. In his opening remarks, Mr Geithner made it clear he wanted to see China open up to foreign businesses. "Innovation holds the key to a more prosperous future, and innovation flourishes best when markets are open, competition is fair, and strong protection exists for ideas and inventions," he said. A particular point of contention has been the US claims that Beijing keeps its currency, the yuan or renminbi, undervalued to make Chinese products artificially cheap in foreign markets. The US instead wants to see China allow the yuan to trade more freely on foreign exchange markets.
Mr Hu promised reform of the currency, but gave no timetable. "China will continue to steadily advance the reform of the formation of the renminbi exchange rate mechanism under the principle of independent decision-making controllability and gradual progress," Mr Hu said. Mr Geithner said continued currency reform would give China "the flexibility to sustain economic growth with low inflation". China has previously pledged to allow the yuan to trade more freely, but says it will not be rushed for fear of harming an economy that remains predominantly export-based despite a big rise in consumer spending in recent years.
