Tensions developed between these two over the US arms sale to Taiwan, differences about China`s currency policy, recent comments from the US about South China Sea issues and the US involvement in naval exercises in the Yellow Sea.
US Senators have criticised the Obama Administration`s report that absolved China of manipulating its currency, saying the only remedy available for the Congress is to pass legislation against the issue.
Lifting the value of China`s yuan currency would hurt, not help, global economic recovery and threaten the country`s own financial and trade health, a Chinese state think-tank said in an essay published on Monday.
A stronger Chinese yuan is part of the reforms that Beijing needs to implement to increase domestic consumption and help ease global imbalances, the head of the International Monetary Fund said on Monday.
The United States and China sparred over exchange rates at a meeting of Asia Pacific leaders on Sunday, pointing to tricky talks ahead for President Barack Obama when he flies to China to address economic tensions.
World Bank president Robert Zoellick has said in 15 years the Chinese yuan can become an alternative to US dollar as a global reserve currency, with China`s fast economic growth and efforts to internationalise the currency.
The Group of Seven rich nations urged China on Saturday to strengthen the yuan, but gave no sign of how it might overcome Chinese resistance to that suggestion or resolve other tensions over global currency rates.