US China talks focus on economy, human rights

United States Secretary of State Hillary Clinton said it was in China's own interest to improve its human rights record, in a speech on the opening day on Monday of high level talks between the world's two biggest economies.

"We know over the long arc of history, that societies that work toward respecting human rights are going to be more prosperous, stable and successful," she said.

The two countries are holding their third annual US -China dialogue, this year in Washington.

For the first time, top military representatives from both sides are attending.

Before the meeting, Chinese Deputy Foreign Minister Cui Tiankai told reporters that Beijing was willing to discuss human rights, but said it would be advisable for the US to consider the "development of China in terms of human rights, rather than being preoccupied with individual cases".

Beijing recently launched a tough crackdown on dissent, rounding up many activists and the high-profile artist Ai Weiwei, who has been in police custody for a month.

One of the key issues also on the agenda is Washington's view that the Chinese yuan is undervalued.

The Treasury department has delayed until after the meeting the publication of its next currency manipulation report to Congress, which could lead to sanctions against Beijing.

China's deputy Finance Minister said the two sides both agree on the direction of reform, but not the speed.