BEIJING, May 24 (Xinhua) -- China and the United States held the second round of the Strategic and Economic Dialogues (SE&D) Monday in Beijing to discuss key issues including trade, investment, global economy recovery, and climate change.

Addressing the opening ceremony, Chinese President Hu Jintao reaffirmed the importance of developing China-U.S. relations. He said sound bilateral ties contribute to peace, stability and prosperity in the Asia-Pacific region and the world.

Hu called on the two sides to maintain close communication at the top and other levels and to develop a pattern of mutually-beneficial and win-win cooperation.

He also called for deepened mutual understanding and friendship between the two peoples and enhanced coordination on key regional and global issues.

The Chinese president expressed the hope both sides will respect the right of each and every country to independently choose its own development path.

Hu said it is natural the two countries may disagree on some issues because of differing national circumstances.

"What is important is respecting and accommodating each other's core interests and major concerns, appropriately handling sensitive issues, and strengthening the foundations of mutual trust," he said.

He stressed that sovereignty, independence and territorial integrity are a country's most basic rights, recognized by norms governing international relations.

The Chinese president urged both countries to keep bilateral relations going in the right direction.

With regard to the reform of the Chinese yuan's exchange rate, a hot topic at the SE&D, Hu reiterated China will continue to steadily advance the reform of the RMB yuan's exchange rate mechanism under the principles of independent decision-making, controllability and graduality.

He said China will continue to pursue a win-win strategy of opening up. The country will expand market access in keeping with established international economic and trade rules and will support the improvement of international trade and financial systems.

China will also promote trade and investment liberalization and facilitation, he added.

On China's effort to accelerate the transformation of its economic development pattern, Hu said: "We will make great efforts to expand domestic demand and increase household consumption, vigorously promote sound and balanced growth of external trade, and reject protectionism in all manifestations."

The dialogue is designed to enhance mutual understanding and trust between the United States and China, the world's largest and third-biggest economies.

President Hu's special representatives, Vice Premier Wang Qishan and State Councilor Dai Bingguo co-chaired the economic and strategic tracks of the SE&D with U.S. President Barack Obama's special representatives, Treasury Secretary Timothy Geithner and Secretary of State Hillary Clinton, respectively.

The strategic track focuses on energy security, climate change, UN peace-keeping and anti-terrorism issues while the economic track discusses topics including the global economic recovery, trade and investment, stability and reform of financial markets, and reform of the international financial system.

The top four delegates all addressed the opening session of the SE&D. Wang Qishan elaborated on how the economic interdependence of the two countries underlines the importance of bilateral cooperation.

Wang's counterpart Geithner used the phrase "common interests" throughout his remarks.

Both Dai Bingguo and Clinton stressed the importance of the SE&D mechanism. Dai called it "a pioneering undertaking in state-to-state relations."

About 50 representatives from more than 40 departments from both countries also participated in the two-day event.