But Kevin Griffis, a spokesman for the US Commerce Department, said "the impact of export controls on hi-tech trade with China is extremely small", Bloomberg reported.

According to the US Commerce Department, of the $63.4 billion in US exports to China in 2009, only 0.3 percent required a commerce license, and fewer than 2 percent of all such license applications to China were denied.

Wang Fan, director of the institute of international relations at China Foreign Affairs University, said the S&ED marked "a beginning for the US to relax meaningless export controls".

"Some restrictions are totally unnecessary. If the US insists on them, its foreign trade will be harmed," the expert said.

Wang Qishan also urged the US to give "equal treatment" to Chinese enterprises investing in the US and accord China market economy status. He expressed hope that the US will take "concrete measures" to curb trade protectionism.

Geithner, too, on Monday emphasized US concern over equal market access.

"We are asking that China give American firms the same opportunities to compete in China that Chinese companies enjoy in the United States," Geithner said.

At a press conference after the first day of talks, Zhou Xiaochuan, governor of the People's Bank of China, the central bank, said the government will "press ahead" with financial reforms.

He also said China and the US have agreed to work together to support Europe's efforts in overcoming the continent's debt crisis.

The two sides reached consensus that the European debt crisis has "added uncertainties" to global economic recovery, and both China and the US must be "cautious" on exiting from their stimulus packages.

"The general view was that the pace of the global economic recovery will be basically sustained," Zhou said.

In a letter to participants, US President Barack Obama said the dialogue was important as it would allow the countries to "understand one another better", particularly on issues over which they disagree, such as Taiwan and Tibet.

But in his remarks, Hu said both countries should "respect each other's core interests".

"To the Chinese people, nothing is more important than safeguarding national sovereignty and territorial integrity. I trust it is not difficult for the American people, who went through the American civil war, to understand how important and valuable unity is to a nation."

(China Daily May 25, 2010)