During the meeting between Chinese President Hu Jintao and U.S. President Barack Obama in April on the sidelines of the G20 London summit, the two leaders agreed to set up a "positive, cooperative and comprehensive relationship for the 21st century," and to upgrade the bilateral strategic economic dialogue of the Bush era into a strategic and economic dialogue. The two countries decided the new dialogue will be held annually and that the two sides will host the dialogue in turn.

Gong Li, Director of the International Strategic Research Institute of the Party School of the CPC Central Committee, told Xinhua News Agency that the new dialogue mechanism illustrates the growing mutual demands and reliance between the two countries.

Gong believes the dialogue mechanism will move in an active and right direction, since the bilateral relationship has been repositioned. "The political and economic cooperation between us is too close to separate," he said.

Shen from CIIS said that unlike the past strategic economic dialogue between the two sides, the new dialogue system would have more practical rather than symbolic significance. The dialogue will continue on topics related to both long-term and strategic bilateral events as well as ongoing regional and global issues. But he most pressing issue right now is how to revitalize the bilateral and world economy. When meeting Geithner, Wen suggested that the two sides make more efforts in addressing the global economic downturn, opposing protectionism in trade and investment, promoting reform in the international financial system, and tightening oversight of international reserve currency so as to ensure the stability and growth of China, the United States and the world.

Shen pointed out that global issues like climate change, energy security and non-proliferation are also important topics and shared interests for the two sides. For example, because the tense situation on the Korean Peninsula is jeopardizing regional security and damaging the interests of related countries, including China and the United States, the two sides must exchange views on this issue.

Observers said another goal of Geithner's China trip was to promote the sale of U.S. treasury bonds, which is why he emphasized that the U.S. financial system is starting to heal, discussed positive economic signs and stressed the safety of buying treasury bonds.