2. Building and deepening bilateral strategic trust

The two sides are of the view that in the 21st century, global challenges are growing, countries are more interdependent, and the need for peace, development and cooperation is increasing. China and the United States have an increasingly broad base of cooperation and share increasingly important common responsibilities on many major issues concerning global stability and prosperity. The two countries should further strengthen coordination and cooperation, work together to tackle challenges and promote world peace, security and prosperity.

The two sides believed that to nurture and deepen bilateral strategic trust is essential to China-U.S. relations in the new era. During their discussions, the Chinese side said that it resolutely follows the path of peaceful development and a win-win strategy of opening-up, and is committed to promoting the building of a harmonious world of enduring peace and common prosperity. The U.S. side reiterated that it welcomes a strong, prosperous and successful China that plays a greater role in world affairs. The United States stated that it is committed to working with other countries in addressing the most difficult international problems they face. China welcomes the United States as an Asia-Pacific nation that contributes to the peace, stability and prosperity in the region. The two sides reiterated that they are committed to building a positive, cooperative and comprehensive China-U.S. relationship for the 21st century, and will take concrete actions to steadily build a partnership to address common challenges.

Both sides underscored the importance of the Taiwan issue in China-U.S. relations. The Chinese side emphasized that the Taiwan issue concerns China's sovereignty and territorial integrity, and expressed the hope that the U.S. side will honor its relevant commitments and appreciate and support the Chinese side's position on this issue. The U.S. side stated that the United States follows its one China policy and abides by the principles of the three

Sino-U.S. joint communiqués. The U.S. side welcomes the peaceful development of relations across the Taiwan Straits and looks forward to efforts by both sides to increase dialogues and interactions in economic, political and other fields and develop more positive and stable cross-Straits relations.

The two sides reiterated that the fundamental principle of respect for each other's sovereignty and territorial integrity is at the core of the three Sino-U.S. joint communiqués which guide China-U.S. relations. Neither side supports any attempts by any force to undermine this principle. The two sides agreed that respecting each other's core interests is extremely important to ensure steady progress in China-U.S. relations.

The two sides believe that China-U.S. cooperation on common global challenges will contribute to a more prosperous and secure world. They reaffirmed their commitment made on June 27, 1998 not to target at each other the strategic nuclear weapons under their respective control. The two sides believe that the two countries have common interests in promoting the peaceful use of outer space and agree to take steps to enhance security in outer space. The two sides agreed to discuss issues of strategic importance through such channels as the China-U.S. Strategic and Economic Dialogues and military-to-military exchanges.

The two sides agreed to handle, through the existing channels of consultations and dialogues, military security and maritime issues in keeping with the norms of international law and on the basis of respecting each other's jurisdiction and interests.

3. Economic cooperation and global recovery

The two sides are determined to work together to achieve more sustainable and balanced global economic growth. To that end, the two sides noted that their forceful and timely policy responses helped stem the decline in global output and stabilized financial markets. The two sides agreed to sustain measures to ensure a strong and durable global economic recovery and financial system. The two sides reiterated that they will continue to strengthen dialogue and cooperation on macro-economic policies. The two sides pledge to honor all commitments made at the inaugural meeting of the Strategic and Economic Dialogues, the G20 summits, and APEC in Singapore.

The two sides commended the important role of the three G-20 summits in tackling the global financial crisis, and committed to work with other members of the G-20 to enhance the G-20's effectiveness as the premier forum for international economic cooperation. The two sides agreed to work together, including through a cooperative process on mutual assessment to make the G20 Framework for Strong, Sustainable and Balanced Growth a success. The two sides welcomed recent agreements by the G-20 to ensure that the International Financial Institutions (IFIs) have sufficient resources and to reform their governance structures in order to improve IFIs credibility, legitimacy and effectiveness. The two sides stressed the need to follow through on the quantified targets for the reform of quota and voting shares of IFIs as soon as possible, increasing the voice and representation of emerging markets and developing countries in these institutions consistent with the Pittsburgh Summit Leaders Statement. They also agreed to work together to strengthen the capacity of these institutions to prevent and respond to future crises.

The two sides will further enhance communication and the exchange of information regarding macro-economic policy, and work together to pursue policies of adjusting domestic demand and relative prices to lead to more sustainable and balanced trade and growth. China will continue to implement the policies to adjust economic structure, raise household incomes, expand domestic demand to increase contribution of consumption to GDP growth and reform its social security system. The United States will take measures to increase national saving as a share of GDP and promote sustainable non-inflationary growth. To achieve this, the United States is committed to returning the federal budget deficit to a sustainable path and pursuing measures to encourage private saving. Both sides will also pursue forward-looking monetary policies with due regard for the ramifications of those policies for the international economy.

The two sides recognize the importance of open trade and investment to their domestic economies and to the global economy, and are committed to jointly fight protectionism in all its manifestations. The two sides agreed to work proactively to resolve bilateral trade and investment disputes in a constructive, cooperative and mutually beneficial manner. Both sides will expedite negotiation on a bilateral investment treaty (BIT). The two sides are committed to seeking a positive, ambitious and balanced conclusion to the Doha Development Agenda in 2010.