The Chinese are expected to announce that they are cutting tariffs on the imports of energy services and technologies, which would boost the market for US products. The Chinese are also expected to increase the stake US and other foreign companies can own in Chinese banks. That ownership level is currently capped at 25 percent.

The administration also hopes to reach a deal expanding opportunities for US airlines in China.

Among the officials participating in the talks are Health and Human Services Secretary Michael Leavitt and Agriculture Secretary Mike Johanns whose agencies are dealing with issues of food safety from Chinese imports.

Paulson was leading a US delegation that includes top officials from 11 Cabinet-level agencies and Federal Reserve Chairman Ben Bernanke. Chinese Vice Premier Wu Yi's team includes 14 Cabinet-level ministers.

A similar collection of high-powered talent assembled for the first session of the strategic dialogue held last December in Beijing. Under an agreement announced last fall, the two countries plan to meet twice a year to discuss a wide range of economic issues.

The two sides were scheduled to dine Tuesday night at the State Department, and the Chinese delegation was scheduled to meet with President George W. Bush during the visit and to have closed-door talks with key members of Congress.

Unhappiness about America's growing trade deficit with China is threatening to provoke a protectionist backlash in Congress. Lawmakers are expressing outrage over a trade gap that last year hit $232.5 billion (euro172.8 billion), the largest deficit ever recorded with a single country and one-third of America's record overall deficit of $765.3 billion (euro568.8 billion).

Members of Congress are promoting a number of bills that would slam penalty tariffs on Chinese products unless China does more to halt what US critics see as unfair trade practices such as China's currency system and the rampant piracy of American products.

American manufacturers contend that China is manipulating its currency to keep it undervalued against the dollar by as much as 40 percent, making Chinese goods cheaper in the US market and American products more expensive in China.

Last week, a group of 42 members of the House of Representatives from both the main US political parties a petitioned the Bush administration to bring a trade case against China on the currency issue. Lawmakers said they were not impressed by China's announcement on Friday that it was slightly widening the daily trading range for the yuan, a move that could allow the currency to rise in value more quickly.

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