By Fu Mengzhi?

The first round of the China-US Strategic and Economic Dialogue concluded on Tuesday with consensus on a number of issues ranging from anti-terrorism, regional threats and military exchanges to global warming, environmental protection and developing new energy options.

That President Hu Jintao sent a message to the Dialogue and US president Barack Obama attended the opening ceremony explicitly indicated the importance attached to the process by the two countries.

In the context of the global financial crisis and emerging challenges, the significance of dialogue and cooperation between a superpower and an emerging power goes far beyond the bilateral ties and has a worldwide impact.

The first high-level dialogue between the world's largest developing country and the most developed country is fulfillment of the consensus reached by Hu and Obama in April. During their first meeting on the sidelines of the London G20 summit in April, the two leaders agreed to set up the China-US Strategic and Economic Dialogue to replace the separate biennial Strategic Dialogue and Strategic Economic Dialogue, which were initiated in 2005 and 2006 respectively.

Among the more than 60 dialogue mechanisms, the Strategic and Economic Dialogue has become the most authoritative one covering the most extensive topics. At the two-day meeting of high-profile dignitaries, including more than 50 ministerial-level officials, a wide range of topics were dealt with. As two big nations, intensified dialogue and cooperation between China and the US are indispensable to the world's efforts to tackle global and regional threats.

Different from the previous dialogues that were often obsessed with contentions over some individual thorny issues, this Dialogue was a major achievement with the two nations agreeing to move forward in a number of critical areas.

Both sides expressed commitment to sound macroeconomic polices for healthier and more sustainable growth, including efforts to prevent new imbalances. Also, China said it would try to raise its domestic consumption while the US said it would increase its deposit ratio.

The two nations agreed to work for a more effective financial system and improve their financial monitoring institutions. They reaffirmed their commitments to a more open trade and investment system, and expressed opposition to trade protectionism. Besides, both sides have reached agreement on restructuring the international financial system and giving more voice to developing nations

Another major achievement is the signing of a memorandum on climate change and energy and environment cooperation. In particular, they agreed to work for effective and continuous implementation of the UN Framework Convention on Climate Change in the run-up to the Copenhagen conference.

At the Dialogue, a new framework mechanism has been confirmed for bilateral consultations, especially on how to cope with common challenges. For example, the two countries agreed to continue to conduct bilateral energy cooperation via established energy forums and dialogues, and promised to strengthen cooperation on renewable energy, nuclear power and strategic oil reserve. They decided to improve the transparency of their energy markets. These will not only help restructure the two countries' industries but also give a boost to the world economy.

In addition to advancing cooperation, the Dialogue is also expected to enhance bilateral mutual trust and cooperation in military affairs. The two countries have committed to increased consultation and cooperation on anti-terrorism, prevention of weapons proliferation, and maintaining regional stability from northeast Asia to the Middle East, south Asia and Africa. They also decided to resume the stalled top-level military exchanges. A special consultative mechanism on Sino-US military maritime security is expected to be first resumed in Beijing in September.

As a barometer of Sino-US relations, military ties between China and the US have long stopped short of mutual trust as seen by many. Thus, participation of military personnel from both sides will help the two countries take a concerted step forward for comprehensive development of bilateral ties.

The author is a researcher with the China Institutes of Contemporary International Relations.

(China Daily July 31, 2009)