Paulson noted that the mechanism sends a message that the two countries are working to establish a "mutually beneficial relationship" to decrease economic risks, as well as political and security risks.

He also called on the two countries, as "global economic leaders", to treat global economic challenges in a "responsive, constructive and creative way."

The existing China-US dialogue and consultation mechanisms, such as the Joint Commission on Commerce and Trade, Joint Economic Committee, and Joint Commission on Science and Technology, remain unchanged.

"The new mechanism is a rational choice for China and the US," said Mei Xinyu from the Trade Research Institute of the Ministry of Commerce.

"The mechanism provides a good opportunity for both sides to fully contact and exchange views with each other, and will play a positive role in ameliorating communicative channels and reducing conflicts between the two sides," he said.

This economic strategic dialogue is not Paulson's only achievement in China since he took office as Treasury Secretary in July.

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