The two countries will meet twice a year to discuss mutual cooperation on issues like climate change and the world economy.
China owns about $700 billion of US debt and is seen as an important player in helping bring the world economy out of recession.
Obama has also called on Beijing to do more in helping to combat climate change.
Obama Opens Policy Talks With China
New York Times - - 36 minutes ago
Chinese officials listened to a speech by President Obama, in which he described ties between the two countries as "important as any bilateral relationship in the world.
Video: US kicks off high-level policy talks with China
worldfocusonline
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