US president Barack Obama and Chinese president Hu Jintao today pledged their governments to deeper co-operation while downplaying differences after meeting at the Great Hall of the People in Beijing.
Mr Obama said China plays a critical role with the United States in dealing with strategic global challenges from curbing the nuclear ambitions of Iran and North Korea to combating climate change.
"The relationship between the United States and China has never been more important to our collective future," Mr Obama said during a joint appearance with Mr Hu.
The US president is making his first visit to Beijing and has emphasised the shared concerns of the US and China throughout his eight-day Asian tour. However, the visit has not erased friction over China's currency, trade imbalances between the two nations and human rights.
Mr Obama nudged Mr Hu to allow the yuan currency to appreciate, but Mr Hu did not mention the yuan, China's currency policy or the dollar during remarks following the meeting with Mr Obama.
However, Mr Obama referred fleetingly to the issue. The yuan has been effectively pegged against the dollar since the middle of last year.
"I was pleased to note the Chinese commitment made in past statements to move toward a more market-oriented exchange rate over time," the US president said as Mr Hu stood next to him on a podium.
"I emphasised in our discussion, as have others in the region, that doing so based on economic fundamentals would make an essential contribution to the global rebalancing effort."
The Chinese leader said both sides saw signs of a global economic recovery but noted there was some way to go.
In a joint statement released after the summit they said they were "determined to work together to achieve more sustainable and balanced global economic growth", echoing the position of the G20 on ironing out dangerous imbalances.
Mr Hu, saying the talks went "very well", said Beijing and Washington would continue to have "consultations on an equal footing to properly address their economic and trade frictions".
"I stressed to President Obama that under the current circumstances our two countries need to oppose and reject protectionism in all its manifestations in an even stronger stance," Mr Hu said, a veiled reference to Chinese frustration at recent US trade measures against Chinese goods.
Mr Hu expressed appreciation that Mr Obama, who arrived in China on Sunday night, had welcomed a "strong, prosperous and successful China that plays an even greater role on the world stage".
Mr Obama said he told China that all minorities should enjoy human rights and urged China to resume talks with representatives of the Dalai Lama, Tibet's exiled spiritual leader.
China agrees that Iran must show its nuclear programme is peaceful and transparent, Mr Obama said.
"We agreed that the Islamic Republic of Iran must provide assurance to the international community that its nuclear programme is peaceful and transparent," Mr Obama added.
"Iran has an opportunity to present and demonstrate its peaceful intentions but if it fails to take advantage of this opportunity it will face consequences."
Mr Hu said he and Mr Obama had agreed to dialogue and consultation in seeking a solution to North Korea's nuclear programme, and added that the two had also agreed to a similar policy in dealing with Iran's nuclear programme.
Reuters