WASHINGTON DC: With the United States and China racing towards the next session of the Strategic Economic Dialogue (SED) in December, the US is keen to see tangible progress.

"Direct engagement keeps a relationship on an 'even keel' by lessening miscommunications and dispelling misperceptions. It further signals to China that we welcome the rise of a competent, peaceful and prosperous China," US Treasury Secretary Henry Paulson said.

"China's re-emergence on the global stage is one of the most consequential geo-political events in recent times. The United States must manage our disagreements with China and foster bilateral cooperation," Paulson said.

Speaking at the third biennial George W. Bush China-US Relations Conference in Washington, Paulson urged results from the three-day meeting and at the upcoming session of the SED.

He said that leadership from both countries must engage in strategic objectives to further the process of an economic, social and environmental relationship.

He congratulated China on the successful conclusion of the 17th Party Congress. "My colleagues and I look forward to developing constructive and productive relationships with the new members of the Chinese leadership team," Paulson said.

The effectiveness with which China addresses product safety concerns will have long-term implications for US-China trade ties. He cautioned that policymakers in both nations should focus on science-based safety decisions rather than "protectionism or retaliation."