Indeed a fruitful outcome

Besides, the two countries have decided to actively explore the possibility of setting up a mechanism to inform each other of their major military activities and to continue talks on the rules of behavior on military, including maritime, activities. This is a major step forward because military-to-military relations will help build strategic mutual trust. By exploring the possibility of setting up a notification mechanism for major military activities, the two sides are trying to make their military-to-military relations an integral part of bilateral relations in their effort to build a new type of major power relationship.

The two countries have also decided to establish a hotline between the special representatives of their presidents to facilitate smoother and uninterrupted bilateral communication, which is necessary given the importance of their relationship. The need now is for the two sides to continue their talks on all fronts, let each other know their intentions, enhance mutual trust and avoid misunderstandings.

The other important areas that the two countries agreed to cooperate in are climate change and energy security, and transparency, which is a step in the right direction to improve bilateral relations.

Fourth, the S&ED covered all major global issues reflecting the responsibilities China and the US shoulder in global governance. To overcome the global financial crisis, the US introduced the quantitative easing (QE) policy, but now it has decided to taper it off. Since Washington's policies have a significant impact on the global financial market, global economic recovery and emerging economies, China has welcomed the withdrawal of QE but suggested that the Federal Reserve properly handle its timing, tempo and intensity to ensure that the rest of the world does not suffer its consequences.

But just one dialogue cannot solve all the problems. The two sides still differ on some issues, and continuous communication is needed to narrow them. In some regional issues, for instance, China has been urging the US to respect the facts, do what it says and refrain from doing something that could further complicate the issues. Moreover, the US is yet to fulfill its promise of easing restrictions on high-tech exports to China. Also, China is waiting for the US to consider its request to be treated fairly as Washington reforms its export control system.

But generally speaking, the S&ED has achieved the expected goals and is an important step forward toward building a new type of major power relationship.

The author is a senior researcher at the Center for US-China Relations at Tsinghua University.

(China Daily 07/15/2013 page8)