It seems by now certain that the China-US Strategic and Economic Dialogue (S&ED) will not only serve as a high-level communication channel between Beijing and Washington, but that it also has strong potential to become a major forum for addressing regional and international woes.

The gravity of Sino-US ties and their combined clout in the international arena indicate such expectations are well grounded.

Regarded as the most important bilateral relationship in the world, the ties are of far-reaching import, not only for themselves, but also for nations around the globe.

The world's biggest developing country and the largest developed nation have been held accountable by other nations each time the international community searched for solutions to such pressing issues as climate change, international governance and nuclear security.

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It was, therefore, a case of keen political insight shown by leaders on both sides to forge the S&ED mechanism. Better communication and profound dialogue between decision-makers on both sides will cement mutual trust, build consensus and expand mutual understanding. The second round of the ongoing S&ED in Beijing has made much headway in this regard.

As long as Beijing and Washington heed each other's core interests and major concerns, the two will be able to handle disputes in a proper manner, and Sino-US ties will experience less volatile swings.

China has always viewed its relationship with the US as strategically significant. The recent setbacks in bilateral ties were triggered by US indifference to China's opposition to any form of separatism. Washington should understand that China attaches utmost importance to defending its sovereignty and territorial integrity.

While many in Washington are keen to criticize China on its fixed currency and trade imbalance, they should understand that the exchange rate of the yuan comes well within the ambit of China's sovereignty. Beijing too shares Washington's concerns that bilateral trade ties should run on a healthy track.

China and the US will benefit immensely if disputes over the economy and trade are handled appropriately. To reduce the trade imbalance, Washington should lift restrictions on hi-tech exports and refrain from resorting to trade protectionism.

China's massive holding of US treasury debt is proof that Beijing throws its weight behind Washington at a time when the US economy is showing a strong recovery momentum.

In the area of strategic cooperation, Beijing and Washington now share similar concerns over issues that could imperil regional or international security. The two have been working closely to defuse the crisis over Iran's nuclear program and promote the de-nuclearization of the Korean Peninsula.

All these topics have been top-of-the-mind for officials attending this round of the S&ED. Beijing and Washington may not be able to solve all their differences on these issues in a single meeting, but they certainly seem more confident about their ties and should hopefully see the bigger picture as far as their future relationship is concerned.