US President Barack Obama speaks during opening session of US-China Strategic and Economic Dialogue in Washington, D.C., 27 Jul 2009 U.S. President Barack Obama says two days of talks with China on bilateral cooperation are an "essential step forward" in advancing a positive, constructive and comprehensive relationship.

The talks began Monday in Washington.

Mr. Obama said the United States and China can cooperate to advance mutual interests in stopping the spread of nuclear weapons. He said the two countries must continue collaboration for the denuclearization of the Korean peninsula, while also uniting to prevent Iran from acquiring a nuclear weapon.

President Obama said the relationship between the U.S. and China will shape the 21st century.

He said the United States and China have a comprehensive relationship that reflects the deepening ties among their people. Mr. Obama said he is pleased that Chinese President Hu Jintao shares the commitment to a sustained dialogue to enhance shared interests. But Mr. Obama said he is under no illusion that the United States and China will agree on everything.

U.S. Secretary of State Hillary Clinton said the talks will focus on security, climate change and the global economic situation. She said the sides may not always see "eye to eye" but that solutions to many challenges are within reach.

Clinton and Treasury Secretary Timothy Geithner are heading the U.S. delegation to the first annual Strategic and Economic Dialogue with China. Geithner lauded China's response to the economic crisis.

Administration officials say the United States wants China to rely less on exports and more on expanding its domestic markets to fuel its economic growth. U.S. officials also say they will emphasize that while the American economy will recover, the process will not be driven by Americans buying foreign goods.

Beijing is sending 150 officials to the talks in Washington - the largest delegation China has ever sent to the U.S.  

China and the United States plan to alternate the venue for the talks each year between Washington and Beijing. The talks are a broader extension of economic talks that began under the previous U.S. administration of George W. Bush.

China is Washington's biggest creditor and holds more than $800 billion worth of U.S. Treasury Securities.

Some information for this report was provided by AP.