Beijing - China and the United States on Tuesday promised closer cooperation on overcoming the global financial crisis, agreeing to hold their first strategic economic dialogue next month.

   'The foremost task for both countries is to work more closely to address the global economic downturn,' Premier Wen Jiabao told visiting US Treasury Secretary Timothy Geithner.

   The Chinese foreign ministry quoted Wen as saying the two nations should jointly 'oppose protectionism in trade and investment,' promote the reform of the international financial system, and 'tighten oversight of international reserve currency so as to ensure the stability and growth of China, the United States and the world.'

   Geithner said the new US-China Strategic and Economic Dialogue will take place in Washington in late July to address the 'challenges and opportunities that both countries face on a wide range of bilateral, regional and global areas.'

   'Through the two days of meetings, we look forward to in-depth discussions with our Chinese counterparts to enhance the welfare of the citizens of both countries,' he said.

   Geithner also met President Hu Jintao on Tuesday, telling Hu he saw 'early signs of stabilization' of the two economies.

   'The world is going through an exceptionally challenging period now and I think the world has a huge stake in our two countries working closely together to lay a foundation for recovery,' Geithner said at a meeting on Monday with Vice Premier Wang Qishan, who will lead the Chinese team in next month's economic dialogue.

   In a speech at Beijing University on Monday, Geithner urged China to allow more openness in trade and investment, and greater flexibility in its currency-exchange mechanism.

   'We should understand that we each have a very strong stake in the health and the success of each other's economy,' he said.

   He said the United States supports a greater role for China in international financial institutions.

   'China is already too important to the global economy not to have a full seat at the international table, helping to define the policies that are critical to the effective functioning of the international financial system,' Geithner said.

   The visit comes at a time when Chinese leaders and economists have expressed concern about the value of Chinese-held US bonds. China is the largest creditor of the United States, holding more than 750 billion dollars in US government debt. （monsters and critics)