THE relations between US, currently the most powerful country, and China, the world's emerging power, remain an enigma. While they cooperate with each other primarily because of their economic interests, political relations have been dogged with the American strategy of' managing' the rise of (.hina.

For the US, it means deepening relations with key Asian allies such as India. ASEAN and Japan. The plan is to prevent growing Chinese influence in the /\sia Pacific region. China, on the other hand, finds the US strategy prickly because it tends tp encircle China with US allies. To counter this perceived position, China is gradually increasing its sphere of influence with the ASEAN countries with trade and in vestment.

Tire bottom line is whether the US accepts China as strategic partner or strategic competitor. During Bush's era the US perceived China as "strategic competitor" From the Obama administration there is not yet definite indication dial China has been considered as “strategic partner".

The China-US Strategic and Economic Dialogue (S&ED). the first of its kind, which opened in Washington on 27th July for two days, is to be viewed in light of the aforesaid scenario.

The new dialogue, to be held every year in alternate capitals, involves the US state department and Chinese foreign ministry and firmly underlines China's growing global footprint.

Chinese Vice Premier Wang Qishan and State Councillor Dai Bingguo participated in the opening ceremony in Ronald Reagan Building in downtown Washington. DC.

According to the Chinese Foreign Ministry and the US State Department. Dai will co-chair the 'Strategic TYack" of the dialogue with US Secretary of State Hillary Clinton, while Wang will co-chair the “Economic TYack" with US Treasury Secretary Timothy Geithner, each as a special representative of their respective presidents.

The talks are a revamped version of a meeting launched by George W Bush that focused solely on economic issues. The dialogue mechanism was upgraded from the former Strategic Dialogue and biennial Strategic Economic Dialogue, which were initiated by the two heads of state in 2005 and 2006 respectively during Bush's era.

In what appeared to be a co-ordinated new slogan, both Obama and Hu Jintao said they sought a "positive, constructive, and comprehensive relationship."

Beijing sent 150 officials to Washington for dozens of meetings with their US counterparts, bringing much of the capital to a virtual standstill.

The Chinese are still sensitive about their inferior status and pushed hard for Obama to open the meeting, according to sources close to the admin-

istration, because "they are still looking for validation". But the hosts were happy to pay tribute to China's ascendance and were optimistic about its ability to act as a responsible member of the global community.

At the Inaugural meeting US President Barack Obama clearly set the settings of future relationships between the two countries that will dominate the world during the21 st century.

Obama said the US and China will "shape the course of the 21 st century" as he opened high -level talks in Washington.

To the satisfaction of the Chinese at talks designed to usher in a new era of friendship, "not confrontation". Obama said that the ties between the two powers were "as important as any bilateral relationship in the world".

"That reality must underpin our partnership. That is the responsibility we bear." he said at the first meeting of the Strategic and Economic Dialogue in Washington.

In recognition of the importance of the two-day summit it has been described by analysts in the US as the "G2", after the G8 and G20 gatherings

Obama called on China to cooperate with the United States in efforts to denuclearize North Korea and urged the North to abide by its pledge of nuclear disarmament made under a six-party deal.

"Neither America nor China has an interest in a terrorist acquiring a bomb, or a nuclear arms race breaking out in East Asia." Obama said here. "That is why we must continue our collaboration to achieve the denuclearization of the Korean Peninsula, and make it clear to North Korea that the path to security and respect can be travelled if they meet their obligations."

Obama's remarks came just hours after North Korea's Foreign Ministry issued a statement earlier in the day (27th July) proposing a fresh dialogue with the US while reiterating its pledge not to attend the six-party talks involving the two Koreas, the US. China. Japan and Russia.

Obama said he was under "no illusions that the United States and China will agree on every issue", but insisted closer co-operation on a range of challenges from lifting the global economy to nuclear proliferation and climate change was vital for the whole world.

Speaking just weeks after the eruption of ethnic violence in China's Muslim-majority Xinjiang province, which left at least 192 people dead. Obama said: "We strongly believe that the religion and culture of all people must be respected and protected, and that all people should be free to speak their minds. That includes ethnic and religious minorities in China."

But he bracketed his criticism with acknowledgement of China's great "ancient culture" and the vibrant contribution of Chinese Americans to the US. For the Chinese, Dai Bingguo, the state councillor, acknowledged the two stales "could never be the same", and echoed his hosts by saying neither country could solve the world's problems alone.

"We are actually all in the same big boat that has been hit by fierce wind and huge waves." Mr Dai said of the economic and other crises.

The strongest message behind the scenes from Timothy Geithner, the US Treasury Secretary, and his staff was that Americans are learning to save more and spend less, meaning China cannot rely on exports to the US for its growth and will have to raise domestic consumption.

The Chinese, holding S801.5 billion (£485 billion) of US treasury debt, meanwhile sought further explanations of what the Obama administration plans to do about the soaring deficits.

Though expectations are low for immediate breakthroughs on a variety of sticking points, even

committed China watchers have been surprised by the speed of the growth in bilateral relations.

The US Treasury Secretary Timothy Geithner said the US and China are committed to fighting protectionism. He said the two countries shared an interest in ensuring that trade remained "open and rules-based". He was speaking after meeting Chinese Vice Premier Wang Qishan in Washington. Mr Geithner said the talks had concluded with an agreement from China to boost domestic consumption and reduce its reliance on export.

The US Secretary of State Hillary Clinton said that both countries had the common goal of ensuring that Iran did not become a nuclear power. "China shares our concerns about Iran becoming a nuclear weapons state. The potential for destabilising the Middle East and Gulf is viewed similarly by the Chinese," Mrs Clinton said.

"There will be areas without a lot of traction," said Drew Thompson, director of China studies at the Nixon Centre think tank, running from the value of yuan to the Dalai Lama and intellectual copyright protection. "But if you don't start to build a relationship you will never achieve the progress that you wan t. *

"There are a lot of things we can't get done without having China on board, and the Chinese are learning that they have a new role and they are leaving big footprints around the world. A certain responsibility comes with that," he added

The dialogue marks a major step toward forging a positive, cooperative and comprehensive China-US relationship in the 21st century as agreed upon in London by Chinese President Hu Jintao and US President Barack Obama in ApriL

The author is former Bangladesh Ambassador to the UN. Geneva