WASHINGTON: Top US and Chinese leaders have agreed to meet July 27-28 in Washington for the first "strategic and economic dialogue" with the administration of President Barack Obama.

The new high-level discussions are an extension of economic talks begun under the administration of president George W. Bush, but with a broader focus.

The dialogue "will focus on addressing the challenges and opportunities that both countries face on a wide range of bilateral, regional and global areas of immediate and long-term strategic and economic interests," according to a joint statement from the US Treasury and State departments Monday.

"This first meeting of the dialogue will also set the stage for intensive, ongoing and future bilateral cooperative mechanisms."

The meeting is the first in a series agreed by Obama and China's President Hu Jintao that replaces a "strategic economic dialogue" established by former president Bush's administration and Beijing.

US Secretary of State Hillary Clinton and Treasury Secretary Timothy Geithner will be joined by their respective Chinese co-chairs, State Councillor Dai Bingguo and Vice Premier Wang Qishan.

Obama and Hu had announced in April the talks would be held in late July but had not announced specific dates.

These talks aim to broaden the dialogue established by the Bush administration to a "cross-cutting structure that addresses the geopolitical nature of our mutual concerns in strategic and economic discussions," according to a Treasury statement.

The structure of the talks "allows for a plenary session to discuss issues of cross-cutting strategic and economic importance, while maintaining distinct strategic and economic tracks," the statement added.

Leaders plan for annual meetings in alternate capitals "to facilitate robust engagement and progress between dialogues through coordination with existing bilateral dialogues and working-level interactions."

On the economic side, the talks are expected to address the massive US trade deficit with China and exchange rates, amid concern in the United States that Beijing is keeping the yuan artificially low to bolster its exports.

Chinese officials have also expressed concern about the value of their massive US bond holdings in the face of a growing US budget deficit.

China is the largest creditor to the United States with US$763.5 billion invested in Treasury bonds, according to June Treasury data. Some Chinese officials earlier this year floated the idea of replacing the dollar with a basket of currencies as the benchmark global unit.

Although Monday's announcement offered no specific agenda, tensions have risen between Washington and Beijing over an uprising by Uighurs in Urumqi, the capital of China's far northwest Xinjiang region.

The United States is also working with China on international sanctions on North Korea in retaliation for its nuclear weapons programme.

China supported a UN resolution on sanctions but has been criticised by the United States in the past for lacking enthusiasm for implementing UN sanctions against North Korea, its neighbour and ally.

- AFP/ls/yb