US Vice President Joe Biden, who started his visit to China under a cloud of criticism over the US debt crisis, told his hosts on Thursday that the two nations held the key to global economic stability.

"I am absolutely confident that the economic stability of the world rests in no small part on cooperation between the United States and China," Biden told his Chinese counterpart Xi Jinping, after he was welcomed at a ceremony in Beijing's Great Hall of the People.

"Our commitment to establishing a close and a serious relationship with the people of China is of the upmost importance to my country."

Biden's visit to the People’s Republic, the world's second-biggest economy, has been seen partly as a bid to build ties with Xi Jinping, who is widely expected to succeed President Hu Jintao in 2013.

Xi Jinping for his part told Biden that that "under the new conditions, China and the United States have ever more extensive common interests and co-shoulder ever more important responsibilities."

Xi also expressed confidence that Washington and Beijing would work together to promote the development of relations between "two great nations."

Biden is due to hold talks with President Hu Jintao and Prime Minister Wen Jiabao on Friday before travelling to the southwestern boomtown of Chengdu.

Thorny issues

As the largest foreign holder of US debt with around 1.17 trillion US dollars, China watched nervously as Washington came close to default this month and Standard & Poor's downgraded the US credit rating. China's state-run media have since delivered a barrage of criticism of Washington's handling of the crisis, which it has described as a "ticking time bomb."

Biden's visit is a chance for China to test the Obama administration's intentions on how to tackle the crisis. The government will also try to find out more about the US' possible plans to sell fresh arms to Taiwan, the self-ruled island that Beijing considers an illegitimate breakaway province.

Biden is expected to suggest that China should focus on its own economic reforms, such as letting its currency appreciate and shifting from a reliance on exports to an economy based on consumption.

Another matter that could exacerbate tension is the issue of human rights. On Wednesday, the United States renewed an appeal to China to free prominent rights lawyer Gao Zhisheng, who has defended some of the countries most vulnerable, including Christians and coal miners. He was convicted in 2006 on subversion charges.

"As we do consistently, we will raise our concerns about the human rights situation throughout China," Danny Russell, senior White House adviser on Asia, said ahead of Biden's trip.

However, observers are agreed that top of the agenda will be Beijing's concern about the safety of its US investments.

Author: Sachin Gaur (dpa, Reuters, AFP)
Editor: Anne Thomas