U.S. and Chinese officials began grappling on the first of two days of the Strategic and Economic Dialogue, with how and when to withdraw the huge economic stimulus spending each has applied and to put in place measures to promote steadier long-term growth.
U.S. President Barack Obama also highlighted the need to deepen ties between the two countries.
"The relationship between the United States and China will shape the 21st century, which makes it as important as any bilateral relationship in the world," U.S. President Barack Obama said. "That reality must underpin our partnership."
Obama said the two nations needed to overcome mutual wariness and deepen cooperation on issues from the global economic crisis to climate change and North Korea.
The U.S. delegation including Treasury Secretary Timothy Geithner urged China to boost domestic consumption and Beijing responded with tough questions about how Washington intends to rein in its soaring budget deficits.
The dialogue wraps up on Tuesday with a closing communique in the late afternoon.