China said on Friday that its Strategic Economic Dialogue (SED) with the United States was "insightful" and "productive", calling on the two sides to promote the dialogue mechanism and step up cooperation.

Chinese Premier Wen Jiabao (R) meets with United States Treasury Secretary Henry Paulson in Beijing, capital of China, December 5, 2008.

"40 agreements reached during the fifth dialogue have once again proved the insightfulness and productiveness of this mechanism," Chinese Premier Wen Jiabao said in his meeting with the US delegation to the SED headed by the US Treasury Secretary Henry Paulson.

China and the United States started their fifth SED in Beijing on Thursday. The two sides discussed strategies for managing macro-economic risks and promoting balanced growth, on open investment and trade policies, including strengthening products, food and drug safety, on respected roles in international institutions and to strengthen cooperation in energy and the environment.

Initiated by the two presidents in 2006, the twice-yearly SED is the highest-level among the existing China-US dialogue and consultation mechanisms.

Chinese Premier Wen Jiabao (R) meets with United States Treasury Secretary Henry Paulson (L) in Beijing, capital of China, December 5, 2008.

Wen proposed the two nations should cement their confidence and intensify cooperation to tackle the current international financial crisis as the confidence was "the source of strength" and cooperation was "one of the effective means" to overcome the financial crisis.

"It is highly necessary for China and the United States to strengthen dialogue and join hands to manage risks and address the challenges," Wen said, promising that China would continue to, along with the members of the international community including the United States, play an active and constructive role to cope with the financial turmoil.

According to a press release from the Chinese Foreign Ministry, Wen also called on the two sides during the meeting to follow two fundamental rules to develop ties. First, to promote relations in a cooperative and constructive manner, and secondly to strengthen dialogue to expand common understanding and establish cooperation with mutual benefit.

Paulson highlighted the success the fifth SED achieved through the joint efforts of the both nations, noting that one of the important themes of the dialogue is to prevent international trade from returning to the era of the protectionism.

Paulson said the United States and China working closer and jointly to tackle the challenges posed by the current financial crisis "is of great importance", the press release said.

Paulson also acknowledged "a series of important outcomes" achieved under the dialogue mechanism during the past over two years, noting that the two nations have increased mutual trust, expanded mutual understanding and laid a solid foundation for the growth of bilateral relations.

"I'm of the firm belief that US-China relations will see further development and consolidation in the future years," Paulson was quoted as saying by the press release.

(Xinhua News Agency December 7, 2008)