China and the United States will hold the fourth Strategic Economic Dialogue in Annapolis, Maryland on Tuesday and Wednesday. Chinese vice-Premier Wang Qishan and US Treasury Secretary Henry Paulson are set to co-chair the meeting, which sits the world's largest developing and developed countries.

To know better the significance of the event, let's follow our reporter Dan Dan.

Reporter:

Initiated by Chinese President Hu Jintao and his US counterpart George Bush in September 2006, the China-US Strategic Economic Dialogue is the first of its kind in history to take place between officials of the highest levels in both countries.

On September 20 two years ago, the then-Chinese vice Premier Wu Yi announced the dialogue mechanism together with Henry Paulson.

"With the world economy continuing to globalize, economic ties between China and the US are growing stronger. This strategic economic dialogue mechanism is established between the world's largest developing country and the largest developed country."

The dialogue convenes semi-annually in the United States and China, with the first meeting being held in Beijing in December, 2006.

Chinese and US officials had extensive discussions on a wide range of topics at the meeting, including balanced development between urban and rural areas, sustainable development, trade, investment, energy and environment issues.

The second dialogue took place in Washington in May last year. Henry Paulson said after the dialogue.

"We agree today on a wide variety of next-steps, including significant items in financial services, energy and environment and civil aviation. The dialogue will continue, our cooperative spirit will continue as well."

The third dialogue held in December last year in Beijing was aimed at seizing the opportunities brought by economic globalization and meeting its challenges. The two countries reached 31 points of consensus and signed multiple specific cooperation agreements.

After the dialogue, Chinese President Hu Jintao met with US Treasury Secretary Henry Paulson.

"The dialogue has been a huge success. Here, I want to express my appreciation and gratitude to the efforts of Vice-Premier Wu Yi and Secretary Paulson."

Although different opinions on several issues remain, it is widely acknowledged that the China- US Strategic Economic Dialogue has played an active role in boosting the stability and development of their bilateral relationship.

Dan Dan, CRI news.