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STORY: High-level U.S.-China security and economic talks in Washington began on Wednesday giving the United States and China an opportunity to discuss strategies for economic reform.

Both countries are fielding cabinet-level leaders at the annual Strategic & Economic Dialogue (S&ED) in Washington for two days.

U.S. Secretary of State John Kerry and Treasury Secretary Jack Lew are hosting Chinese State Councilor Yang Jiechi and Vice Premier Wang Yang - representatives of a new leadership lineup installed in Beijing in March under President Xi Jinping.

Vice President Joe Biden said he hoped the talks would help to build a new understanding between the two nations.

"The stakes are very high because it's fair to say that the dynamic that emerges between our nations will effect not just our peoples, but quite frankly have a significant impact on the entire world."

Secretary Kerry said the meetings were an opportunity to