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 While the world's two largest economies have important mutual
interests, like trying to rein in North Korea's nuclear program,
deep disagreements exist over everything from Internet security to
China's claims in the South China Sea.
"We have seen our bilateral relationship evolve and strengthen in
recent months. And we have found areas of broadened and deepened
cooperation that we are certainly looking forward to building upon,"
Rice told China's top diplomat, State Councillor Yang Jiechi, who
outranks the foreign minister.
"At the same time, we have been able to discuss frankly our
differences, which we both acknowledge need to be addressed
effectively."
Yang said that both countries had cooperated closely over the Iran
and North Korean nuclear issues.
 "With shared efforts on both sides, China-U.S. relations have
maintained a trend of overall positive development recently," he
added.
Xi told Rice that China wanted "sustainable and steady growth" in
ties with Washington.
"We stand ready to further promote our practical cooperation,
effectively manage the sensitive issues between us and strengthen
the friendship between the people of both countries," Xi said.
Rice also met Fan Changlong, one of the vice chairmen of the Central
Military Commission, which Xi heads and which controls the Chinese
armed forces, the world's largest.
Fan said that his meeting with Rice was the fourth in one year,
which showed the importance the two countries attach to
military-to-military relations.
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"Both sides should work hard to control and manage disputes and
risks," the official Xinhua news agency quoted Fan as saying.
Rice said the United States was committed to developing healthy and
stable ties with the People's Liberation Army, and praised
cooperation between the two over the Ebola outbreak in West Africa
and efforts to fight piracy in the Gulf of Aden.
There was no mention in any of the comments in front of reporters of
cyber issues or the South China Sea.
The United States has repeatedly expressed concern about Chinese
reclamation work in the South China Sea. China says the United
States is not a claimant nation in the dispute and should stay out
of it.
China claims most of the South China Sea, through which $5 trillion
in ship-borne trade passes every year, and rejects the rival claims
of Vietnam, the Philippines, Brunei, Malaysia and Taiwan.
(Reporting by Megha Rajagopalan and Ben Blanchard; Editing by Nick
Macfie)
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