China-US Strategic and Economic Dialogue preview

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The first China-US Strategic and Economic Dialogue is the first time for the Obama administration to talk with China in the framework of the Dialogue that has been transformed from previous China-US strategic economic dialogues. New topics will be highlighted this time around and common ground will be sought to narrow existing differences.

Chinese President Hu Jintao (L) shakes hands with US President Barack  Obama at Winfield House, the US ambassador's residence in London  April 1, 2009. (Xinhua)

The mechanism of the strategic and economic dialogue was jointly launched by President Hu Jintao and President Barack Obama during their meeting in London in April. The new mechanism involves more departments and higher-level officials from both sides, compared with previous strategic economic dialogues.

Many topics are on the agenda including the global financial crisis, climate change and the nuclear standoff with the DPRK. But each side has its own focus and priorities.

During the Dialogue, the Chinese government says it will ask the United States to protect its investment assets, as China is the biggest holder of US Treasury bonds. China says it wants to see a more stable US financial market, as well as a declining government fiscal deficit. This is not the first time for China to urge the US to step up its efforts to guarantee the safety of China's investment assets. US Treasury Secretary Timothy Geithner stressed during his visit in Beijing in June that China's US dollar assets are safe. And that Washington is committed to keeping the dollar strong and inflation low.