China and United States on Saturday agreed to work more closely in dealing with the global financial crisis, climate change, energy, environment and other issues of common concern.

The agreement came out of the talks between Chinese Foreign Minister Yang Jiechi and U.S. Secretary of State Hillary Clinton Saturday morning.

Chinese Foreign Minister Yang Jiechi (R) shakes hand with visiting U.S. Secretary of State Hillary Clinton in Beijing, China, Feb. 21, 2009. Hillary Clinton arrived in Beijing on Friday evening, kicking off her visit to China. [Xinhua Photo]

This marked the beginning of face-to-face diplomacy between the two countries since the Obama administration took office last month.

"During the talks, both sides reached a principled agreement on establishing a strategic and economic dialogue mechanism. Detailed arrangements will be worked out later," according to a statement released by the Chinese Foreign Ministry.

The statement said both sides agreed on stepping up dialogues on strategic, overall and long-term issues in political, diplomatic and economic sectors.

"As we start the new administration of President Obama, we want to deepen and broaden our relationship," Clinton said.

She arrived in Beijing Friday -- the last stop of Clinton's week-long inaugural overseas trip as America's top diplomat.

Clinton said both countries have established "a solid foundation" for the relationship, citing bilateral cooperation in economy, trade, climate change, regional and international issues.

"But there is much more to be done," Clinton said, adding the new U.S. administration would like to work more closely with China and accomplish more positive fruits for both countries and people.

Yang said Chinese President Hu Jintao has exchanged views with his U.S. counterpart Barack Obama by phone and other means after he took office, reaching a consensus on further promoting Sino-U.S. relations in the new era.

"The two presidents' meeting, which will take place on the sidelines of a G20 summit in London in April, will be of great significance," the statement said.

Yang appreciated Clinton's long-time contribution to enhancing Sino-U.S. relations.

"I expect to establish a good working relationship with you for the promotion of exchanges and cooperation between our two countries," Yang said.

Entering 21st century in particular, the two countries share more common interests and have a broader foundation for cooperation while confronting the pressing global challenges, Yang said.

"The current situation calls upon us to strengthen dialogue and exchanges, increase mutual trust and cooperation, and to upgrade the bilateral ties to a new height," Yang said.

On the Taiwan issue, Yang urged the United States to scrupulously abide by the one-China policy and the three joint communiques, handle the Taiwan issue prudently and properly, and support the peaceful development of the cross-strait relations.

Yang accepted Clinton's invitation to visit the United States in March.

Clinton was scheduled to meet with Chinese President Hu Jintao, Premier Wen Jiabao and State Councilor Dai Bingguo later Saturday.

She will also visit a clean thermal power plant built with U.S. and Chinese technology, which Clinton hailed as "an example of the kind of job-creating, bilateral, public-private collaboration that we need so much more of."