Vice-Premier Wen Jiabao said that China and the United States should develop their relations from "a strategic point of view."

During Monday's one-hour closed-door meeting with United States trade representative Robert Zoellick in Beijing, Wen said the two countries should proceed from the fundamental interests of their peoples to maintain world peace when handling bilateral relations.

As long as both sides took concrete steps in line with talks between their heads of state at Crawford, Texas, last year, and worked together with mutual respect, Sino-US relations would inevitably expand further, Wen was quoted as saying by a foreign trade ministry official.

The Chinese vice-premier noted that China was determined to carry out commitments it made when joining the World Trade Organization (WTO), and was capable of doing so.

Zoellick said China was making good progress in implementing its WTO agreements.

"I think that progress has been pretty good. We do not expect changes overnight,'' said Zoellick, after talks with Wen and foreign trade minister Shi Guangsheng.

Zoellick arrived in Beijing on Sunday for a four-day visit to China, which will also take him to the cities of Chongqing and Shenzhen.

He said China has taken important steps, such as introducing laws and issuing extra licences in the insurance industry, to reform its economy in the 14 months since it joined the WTO.

"On the other hand, there are areas where we want to be sure China moves as rapidly as we believe it can,'' Zoellick added.

China's accession to the WTO had been a priority for President George W. Bush's administration in its first year, Zoellick said in a statement ahead of the visit.

When meeting with Wen, he said the United States recognized that China had been conscientious in carrying out its pledges and had worked vigorously to implement WTO rules.

Zoellick said the United States and China should increase co-operation in political, economic and trade spheres.

Moreover, he noted the United States hoped to work closely with China so that bilateral relations could grow smoothly.

The nation's moves to meet WTO obligations was noted recently in a commentary on Financeasia.com, a Hong Kong-based regional website for Asia's institutional investors. The commentary was written by Thomas Ng, a managing associate of the China Group at law firm Linklaters and former adviser to Citibank in its acquisition of shares in Shanghai Pudong Development Bank.

Ng said some of the laws passed by the Chinese Government over the past 12 months were driven by "the authorities' desire to deepen economic reform... and create an even more attractive environment for foreign investment.''

"Soon after accession, China undertook the mammoth task of updating its merger and acquisition (M&A) regulations to make them consistent with WTO obligations,'' he said.

Following meetings in Beijing, Zoellick will travel to Chongqing in western China to see first-hand the economic opportunities and potential of the largest city in the world before leaving for Shenzhen and Hong Kong.

The volume of Sino-US trade totalled US$97.18 billion in 2002, up 20.8 per cent year-on-year. The United States now is China's second largest trade partner.