Iran oil

Iran was reportedly raised in the talks. According to media reports, Geithner appealed for China's support for tougher sanctions on Iran - an important source of oil for China.

Reuters quoted Geithner as telling Xi that on issues, including non-proliferation, "we have what we view as a very strong cooperative relationship with your government and we are looking forward to building on that."

China on Wednesday called on Iran and the International Atomic Energy Agency (IAEA) to cooperate over a new uranium enrichment plant, as talks of unilateral sanctions on Iran loom large just days ahead of a landmark visit to three Arab nations by Premier Wen Jiabao.

"We hope Iran and the IAEA will cooperate, ensure safeguards and clarify pending issues in the Iranian nuclear program as soon as possible," Foreign Ministry spokesman Liu Weimin said.

Insisting that its nuclear programs are for peaceful purposes, Teheran has said it will not abandon uranium enrichment activities and is threatening to shut down the strategic Strait of Hormuz if the US and the European Union impose oil embargoes.

Washington does not have much faith in the outcome of Geithner's visit, said Ye Hailin, a researcher at the Chinese Academy of Social Sciences.

Explaining the rationale for sanctions on Teheran is a major reason for Geithner's trip to Beijing, Ye said. "If China disagrees (to US sanctions), Washington can then use this opportunity to mess up Beijing's relations with its Western allies and Arab nations," he said.

"For the Chinese, Sino-Iranian trade in fact has nothing to do with the US," Ye said.

The Republic of Korea and Japan both depend heavily on Iranian oil and are turning to other suppliers. Geithner is scheduled to hold talks with Japan's Prime Minister Yoshihiko Noda and Finance Minister Jun Azumi in Tokyo on Thursday.

Foreign Ministry spokesman Liu said China "has reasonable demands for energy" as a major developing country. "Regarding this issue, we have repeatedly stated that China has normal and transparent energy cooperation with Iran, and that does not violate Security Council resolutions."