The US delegation is led by Secretary of State Hillary Clinton and Treasury Secretary Timothy Geithner. They will meet with Bingguo and China's Vice Premier Wang Qishan.

The talks are expected to be dominated by the global economic crisis.

Obama urged China to begin boosting domestic demand and begin shifting from a dependence on exports, in order to help put the global economy on a more 'solid foundation'. The US has been concerned that China is saving too much as the global economic downturn has prompted a decrease in consumer consumption.

China is likely to press the US on its skyrocketing budget deficit, driven in part by Obama's massive spending to jump-start the economy. Washington's deficit is expected to reach $1.8 trillion this year.