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We also discussed how to expand people-to-people and cultural exchanges between the two countries, particularly the youth exchanges.  And we are supportive of the establishment of a people-to-people and cultural exchange mechanism, and we agreed to strengthen our cooperation in exchanging students.

Both of us said that we will remain committed to dialogue and consultations in resolving the Korean Peninsula nuclear issue.  And such approach serves the common interests of China, the United States, and other parties concerned.  The two sides will work with other parties concerned to continue the denuclearization process of the Korean Peninsula and six-party talks process in a bid to uphold the peace and stability in Northeast Asia.

We both stressed that to uphold the international nuclear nonproliferation regime and to appropriately resolve the Iranian nuclear issue through dialogue and negotiations is very important to stability in the Middle East and in the Gulf region.

During the talks, I underlined to President Obama that given our differences in national conditions, it is only normal that our two sides may disagree on some issues.  What is important is to respect and accommodate each other's core interests and major concerns.

President Obama on various occasions has reiterated that the U.S. side adheres to the one-China policy, abides by the three Sino-U.S. joint communiqués, and respects China's sovereignty and the territorial integrity when it comes to the Taiwan question and other matters.  The Chinese side appreciates his statements.

The two sides reaffirmed the fundamental principle of respecting each other's sovereignty and territorial integrity.  Neither side supports any attempts by any force to undermine this principle.  We will continue to act in the spirit of equality, mutual respect, and a noninterference in each other's internal affairs, and engage in dialogue and exchanges on such issues as human rights and religion in order to enhance understanding, reduce differences, and broaden common ground.

Ladies and gentlemen, the China-U.S. relationship is very important.  To preserve and promote the growth of this relationship is a shared responsibility for both China and the United States.  The Chinese side is willing to work with the U.S. side to ensure the sustained, sound, and steady growth of this relationship to the greater benefits of peoples of our two countries and people throughout the world.

Thank you all.  Now we would like to give the microphone to President Obama.

PRESIDENT OBAMA:  Good afternoon.  I want to start by thanking President Hu and the Chinese people for the warmth and hospitality that they have shown myself and our delegation since we arrived.  We had a wonderful day in Shanghai yesterday, a wonderful discussion with China's young men and women, and I'm looking forward to the conversations we'll have and the sights that we'll see here in Beijing over the next two days.

We meet here at a time when the relationship between the United States and China has never been more important to our collective future.  The major challenges of the 21st century, from climate change to nuclear proliferation to economic recovery, are challenges that touch both our nations, and challenges that neither of our nations can solve by acting alone.

That's why the United States welcomes China's efforts in playing a greater role on the world stage -- a role in which a growing economy is joined by growing responsibilities.  And that's why President Hu and I talked about continuing to build a positive, cooperative, and comprehensive relationship between our nations.

As President Hu indicated, we discussed what's required to sustain this economic recovery so that economic growth is followed by the creation of new jobs and lasting prosperity.  So far China's partnership has proved critical in our effort to pull ourselves out of the worst recession in generations. 

Going forward, we agreed to advance the pledge made at the G20 summit in Pittsburgh and pursue a strategy of more balanced economic growth -- a strategy where America saves more, spends less, reduces our long-term debt, and where China makes adjustments across a broad range of policies to rebalance its economy and spur domestic demand.  This will lead to increased U.S. exports and jobs, on the one hand, and higher living standards in China on the other.

As President Hu indicated, we also agreed that maintaining open market and free flows of commerce in both our nations will contribute to our shared prosperity.  And I was pleased to note the Chinese commitment, made in past statements, to move toward a more market-oriented exchange rate over time.  I emphasized in our discussions, and have others in the region, that doing so based on economic fundamentals would make an essential contribution to the global rebalancing effort.

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