The fifth round of the China-U.S. Strategic and Economic Dialogues (S&ED) was held from July 10 to 11 in Washington, D.C., U.S.A.. The special representatives of Chinese President Xi Jinping, Vice Premier of the State Council Wang Yang and State Councilor Yang Jiechi, and the special representatives of U.S. President Barrack Obama, Secretary of State John Kerry, and Treasury Secretary Jacob Lew, co-chaired the dialogues. Both sides had candid and in-depth exchange of views on the implementation of consensus reached at the Presidential meeting at Annenberg Estate and the promotion of construction of the new model of major-country relationship between China and the U.S.. The two sides reached broad consensus, and achieved important and positive results.

In the economic dialogues, the two sides had candid and in-depth exchange of views on overall, long-term and strategic issues of the economy of the two countries and the world. Both parties promised to promote economic structural reform and sustainable and balanced development. The U.S. promised to increase investment, improve the savings rate, cut deficits and debt, be committed to achieving medium-term fiscal sustainability, and pay close attention to the spillover and international influence of the monetary policy. Both sides will discuss on time the major economic policies with each other. Both sides are committed to strengthening macroeconomic policy coordination, promoting the reform of international financial institutions, advocating multilateral development bank to enhance loan ability, and promoting the recovery and growth of the world economy, under the framework of G20, APEC, and other mechanisms.

Both sides agreed to start substantive negotiations on China-U.S. bilateral investment agreement on the basis of Pre-Establishment National Treatment and negative list. The U.S. side promised to offer fair treatment for Chinese enterprises to invest in U.S. and will maintain an opening-up investment environment for Chinese investors, including state-owned enterprises. The U.S. promised that all investment review by the Committee on Foreign Investment in the United States (CFIUS) will be within the limits of national security, not going to economic policies or any other national policies.

The two sides reaffirmed to support the multilateral trading system and oppose trade protectionism. The U.S. side promised to offer China the fair treatment in the process of its export control system reform and take China's concerns under serious consideration. The U.S. side promised to work hard through cooperation for a rapid and full acknowledgement of China's market economy status.

The United States pledged to inform China the legal requirements in its Natural Gas Act for the evaluation of exporting liquefied natural gas (LNG) to China and other non-FTA countries.

The two sides agreed to strengthen financial cooperation, including cooperation in law enforcement of supervision of financial institutions, cross-border supervision, shadow bank, OTC derivatives, international convergence of accounting standards, and U.S. Foreign Accounts Tax Compliance Act. The United States welcomes Chinese financial institutions to invest in the U.S. Market.

In the strategic dialogues, the two sides conducted candid, in-depth and constructive dialogues in promoting to build the new model of major-country relationship between China and the U.S,, enhancing strategic mutual trust, constructing a pattern of benign interaction between the two countries in Asia-Pacific, and expanding cooperation on climate change as well as global and regional hot-spot issues of Middle East, South Asia and others.

Relevant government departments of the two countries held sub-dialogues including the 3rd China-U.S. Strategic Security Dialogue and the 1st Cyber Working Group Meeting. In addition, consultations were held between the two sides over climate change, Customs, combating illegal transactions of wildlife animals and plants, UN peace keeping, South Asian affairs and Latin American affairs.

The two sides agreed that China-US relationship has reached a new starting point and both hold stakes to the success of each other. The two sides agreed to continue the active actions to push from all dimensions to set up a new model of major-country relationship between the two countries.

The two sides agreed to strengthen high-level exchanges as well as dialogues and consultations at all levels, to continue to improve and develop military-to-military relations, to explore ways to build a mechanism of informing each other for major military actions. To actively expand and deepen dialogues and cooperation in the fields of climate change, energy, science and technology, judicial system, maritime affairs, Customs, nuclear security, forestry, anti-terrorism, and law enforcement.

The two sides agreed that the building of the new model of major-country relationship should start from the Asia-Pacific region. The two sides should strengthen communication and coordination in regional affairs, try to form a pattern of benign interaction and join the efforts to safeguard peace, stability and development in Asia-Pacific. The Chinese side expounded its principles and position on sensitive issues including the East China Sea and South China Sea issues, stressed China’s firm stand on sovereignty and territorial integrity, and proposed to properly handle and settle the territorial disputes through consultations and negotiations between countries directly concerned. The Chinese side urged the US side to respect the facts, discern between right and wrong, not to do anything which might complicate the situation.

The two sides had in-depth exchanges of views on the situation of the Korean Peninsula. The Chinese side reiterated that China adheres to denuclearization on the Peninsula, to safeguarding peace and stability on the Peninsula, and to solving problems through dialogues and consultations. The Chinese side called on all parties concerned to work together to promote an early resumption of the Six-Party talks. The two sides agreed to maintain close communication and coordination.

The two sides will strengthen dialogues and coordination on international and regional affairs.

On cyber security issues, the Chinese side expounded the principle and position of the Chinese government. The two sides had candid, in-depth exchanges of views on the institutional building of the Network Working Group, network relations between the two countries, international rules on cyberspace and other related issues. They raised some initiatives for cooperation in a constructive manner, and agreed to hold one additional Network Working Group intersessional meeting this year.

The Chinese side expounded principles and position on issues related to Taiwan, Tibet, Xinjiang, and human rights. The Chinese side stressed that the two sides should respect each other's sovereignty and territorial integrity, respect each other’s choices of social systems and development paths, respect each other's interests and differences, and properly handle differences and frictions.

Wang Yang stressed that mutual understanding and mutual trust are important prerequisites for the win-win cooperation between China and the United States. It is believed that the S&ED will continue to be an important platform for the two sides to expand consensus and deepen cooperation and it will play a more important role in building the new model of major-country relationship between the two countries.

Yang Jiechi pointed out, it is an arduous historical task to build the new model of major-country relationship between China and the U.S.. There is a long way to go. However, the two countries will surely be able to complete this great cause, which is unprecedented and blazes the trail for the future, as long as we follow the course charted by the heads of state and take actions with firm confidence and wisdom.

The two sides made positive comments on the important role of the S&ED mechanism and agreed to further improve the mechanism. The two sides announced to set up a hot-line between the special representatives of the heads of state.