US security concerns have also blocked Chinese companies' investment in the US.

A host of Chinese companies, including Chinese telecom equipment maker Huawei, suffered setbacks to their overseas acquisition and merger plans because of security fears in the US.

The upcoming meeting has assumed strong significance as it is the first S&ED meeting after the two nations agreed to fine-tune bilateral ties as "a cooperative partnership based on mutual respect and mutual benefit" during President Hu's US visit in January.

The Chinese co-chairs, Vice-Premier Wang Qishan and State Councilor Dai Bingguo, will be joined at the meeting by US Secretary of State Hillary Clinton and Treasury Secretary Timothy Geithner, and a number of ministers and high-level officials from both sides will also attend.

"The bilateral relationship has returned to a positive track compared with the climate during last year's discussions," said Song Hong.

China was under great pressure during last year's S&ED meeting as the currency issue cast a shadow over bilateral ties.

"The prospects for future cooperation are quite tempting because new opportunities will emerge as both countries are adjusting their economic structure," Song said.

China will stick to its strategy of expanding internal demand and changing its investment- and export-oriented economy in the 12th Five-Year Plan (2011-2015) while the US is seeking to invest more and cut its budget deficits and borrow less from the rest of the world.

China will continue to open up because competition is the best way to push forward reform and improve people's livelihoods, said Commerce Minister Chen Deming.

"China has plans to further loosen restrictions on foreign investment, but developed countries also need to provide equal market access," Chen said.

In 2010, China's overseas direct investment was $59 billion, equal to only 60 percent of the foreign direct investment in China, according to the Ministry of Commerce.

China has also been the fastest-growing market for US exports and a strong supporter of Obama's plan to double US exports in the next five years. The two sides agreed on $45 billion in US export deals in January and these deals are expected to support some 235,000 jobs in the US.