Both Biden and Clinton acknowledged that the two countries have differences over human rights.

Dai made an evocative speech highlighting the cooperation between the two countries.

"I am standing here addressing you as a 70-year-old man, an age when I should enjoy the company of my children and grandchildren ....

"I am doing this (attending the meeting) to implement the consensus of our presidents for the achievement of one lofty goal, to make our two countries and people forever good friends and good partners, and to enable our children and children's children to live in peace and happiness. Could we ever let them down? The answer is a definite 'No'."

Both sides, for the first time, brought top military leaders to the talks in an effort to defuse tension following US arms sales to Taiwan last year.

The US massive trade deficit with China, currency rates and human rights concerns will also figure prominently during the talks.

At the same time, China, America's biggest foreign creditor, wants assurances that its $1.2 trillion in US Treasury holdings are safe despite the impending congressional debate over raising the government's $14.3 trillion borrowing limit.

"The Chinese are astounded that the US government would let the debate get to a stage where there is even a remote possibility of a default," said Eswar Prasad, a China expert at Cornell University.

The higher debt limit is needed to make sure America can keep paying the interest bill on the debt to China and other investors.

Geithner had last week said that the US would press China to accelerate efforts to revalue the yuan. However, this time around he sounded a conciliatory note and said the yuan had risen in value by 5 percent since last June, and even faster once inflation is taken into consideration.

Sun Zhe, director of the Center for US-China Relations at Tsinghua University, said in terms of the economy and trade, the US is mainly concerned about the yuan exchange rate, innovation, intellectual property rights and government procurement.

China's concerns include the US ban on the export of high-tech products and the granting of market economy status.

Sun said the next three to five years would be an important period for both countries, and how to enhance their communication and drive the world economy with their own development would be deliberated during the current dialogue.

Li Jie, a researcher with the Chinese Navy's Military Academy, told China Daily that future high-level military talks, maritime security cooperation, and regional security will probably dominate the first military dialogue.

Beijing has repeatedly protested against surveillance by US military planes and ships in waters near China.

Discussions between senior military representatives will "help reduce the chances of conflict", Li said.

Li Xiaokun and Cheng Guangjin in Beijing, AP and Reuters contributed to this story.