China and the United States need to manage their differences, the leaders of both countries said on Wednesday at the start of annual talks expected to focus on cyber-security, maritime disputes, the Chinese currency and an investment treaty. The two-day talks in Beijing, called the Strategic and Economic Dialogue, will be an opportunity for the world's two biggest economies to dial down tensions after months of bickering over a host of issues, experts have said. U.S. Secretary of State John Kerry and Treasury Secretary Jack Lew chair the U.S. delegation, with Vice Premier Wang Yang and top diplomat Yang Jiechi leading the Chinese side. President Xi Jinping said Sino-U.S. cooperation was of vital importance to the global community. "China-U.S. confrontation, to the two countries and the world, would definitely be a disaster," he told the opening ceremony at a government guesthouse in the west of the city. "We should mutually respect and treat each other equally, and respect the others sovereignty and territorial integrity and respect each others choice on the path of development." In a statement released as the discussions began, U.S. President Barack Obama said the United States was committed to building a "new model" of relations with China that is defined by cooperation and the constructive management of differences. "The United States welcomes the emergence of a stable, peaceful, and prosperous China," Obama said. "We remain determined to ensure that cooperation defines the overall relationship."
