The fourth China-US Strategic Economic Dialogue, or SED, has kicked off in Annapolis, Maryland in the United States. At the opening ceremony, Chinese Vice premier Wang Qishan says the two sides should increase consensus in terms of macro economic and financial policies as well as energy and environmental protection. Meanwhile, he says the two sides should also look to concerns of each other, avoiding politicizing economic and trade issues. Liu Wei reports.

Reporter:

At the opening ceremony on Tuesday, Wang Qishan said under the circumstances that the international financial sector is experiencing turmoil, the strategic economic dialogue is vital for both countries in a bid to deepen economic and trade cooperation and jointly handle challenges they face.

The theme for this round of dialogue is sustainable economic growth, and the main issues to be discussed include macro economy, financial management, public investment, energy and the environment, trade and competition, and investment enhancement.

Wang Qishan noted the two sides should increase consensus on all the above issues.

"These are all the major issues faced by both countries which are of strategic and long-term significance to both countries. Here I want to stress that we should deeply discuss the Subprime mortgage crisis and its impact, strengthen our cooperation in making macro economic policies and financial policies so that economic and financial stability can be maintain in both countries and the whole world. Energy and the environment are two news fields where the two countries can increase their cooperation."

Wang Qishan also pointed out that economic and trade cooperation between China and the US has a sound foundation and is irreversible. In that case, the two sides should look to each other's concerns and solve them through dialogue, instead of politicizing economic and trade issues.

"To promote China-US economic and trade relations, the Chinese Government has made enormous efforts in opening its financial service industry, intellectual property protection, product quality and food safety. Tangible achievements have been made in reducing China's trade surplus against the US and reform of China's foreign exchange rate system. But all these issues should be solved gradually. The current situation in China, the international industry transfer and international labor division as well as the complex factors of the international monetary system, must all be taken into consideration in that process."

While calling on the two countries to increase consensus and pay attention to each others concerns, Wang Qishan suggested the strategic dialogue system be further improved, and mutual trust be further increased.

Also at the opening ceremony, US treasury secretary Henry Paulson expressed the importance of the SEU between the two countries.

"The US-china economic relationship is complex, broad and important to both our countries and to the world economy. The US-China relationship has become central to each nation's interest and to maintaining a stable, secure and prosperous global economic system. Through the on-going, dynamic and respectful discussions of the SED, the relationship is growing in a positive direction. The SED has brought concrete progress on issues important to the U.S., Chinese and global economy faster than would have been possible otherwise."

Attending the two-day event are minister-level officials from both governments. Chinese minister of finance Xie Xuren, head of the State Environmental Protection Administration Zhou Shengxian, Minister of Commerce Chen Deming, and head of China's central bank Zhou Xiaochuan, as well as high officials from China's insurance, securities and banking regulatory commissions are among the Chinese delegation headed by vice premier Wang Qishan.

Liu Wei, CRI News, Washington.