US and Chinese officials are expected to discuss issues ranging from security to economic ties. The particulars on the agenda include the US export opportunities here, China's latest financial reforms and what's ahead, and America's quantitative easing.

This is widely expected to be the last annual summit for both Geithner and Clinton, who have said they will not continue in their present roles even if President Obama wins another term this fall. China is also planning a leadership transition later this year.

John Holden, Managing Director of Hill & Knowlton, said, "In the US this year though China has become for the first time in my memory an issue that is discussed by presidential candidates, in every debate. China has become bigger, more influential, more consequential, American people want to know what their candidates think about what they are gonna do."

Efforts in the past few years have been paid off. Progress toward closing the yawning trade deficit between the two countries has been evident. U.S. exports to China have almost doubled since the beginning of Obama's term.

And China is also pressing ahead reform of its RMB exchange rate mechanism. The yuan has appreciated significantly against the US dollar this year.

The US and China will also exchange ideas on a range of security issues. Analysts say the dialogue would be crucial to build on mutual understanding and trust.

Jin Canrong, Vice Dean of School of Int'l Relations, Renmin Univ., said, "Under the strategic dialogue scheme, we hope to resolve some degree of 'trust deficit', and consolidate strategic foundation. The two side will also exchange ideas on hot topics of regional security issues."

"Although differences remain, the interest of the two countries have converged to an unprecedented degree. Analysts say to anchor their relations on smooth terrain, China and US should pay heed to each other's core interests and major concerns, deepen mutual understanding and build strategic mutual trust."