China and the United States reached agreement to collaborate closely in the Asia-Pacific region after a two-day strategic and economic dialogue in Washington D.C. on Tuesday.

Leading officials from both sides will participate in chalking out a future strategy entailing closer coordination in the region, said Chinese Executive Vice Foreign Minister Zhang Zhijun.

It would be inappropriate for China and the United States to talk about cooperation at global level without cooperation in the Asia-Pacific region. We do hope the launch of this mechanism will further promote sound interactions between our two countries in the Asia-Pacific region so that we can together make positive contributions to the peace, stability and development of the region, Zhang said.

World’s two biggest economies have come together to enhance mutual trust and to further deepen bilateral ties in different sectors.

The United States and China have good understanding with each other and through the dialogue they are building up more trust, while both sides are very transparent about their agenda, said U.S. Secretary of State Hillary Clinton.

Analysts say this could make it easier for the U.S companies to be part of the key sectors of the Chinese economy. China has allowed the U.S banks to sell mutual funds in Chinese banks.

On China's concerns about U.S. investment policies, U.S. Treasury Secretary Timothy Geithner said, I'm very confident that if you look over the next several years, you're going to see Chinese investment in the United States continue to expand very, very rapidly.

The talks in the third round of China-U.S. Strategic and Economic Dialogue (S&ED) were now upgraded than the Strategic Dialogue and biennial Strategic Economic Dialogue, which were initiated by the two heads of state in 2005 and 2006, respectively.

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