More US high-tech coming

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The current export control system, based on the export law issued by the U.S. in 1979, is a result of the Cold War, according to spokesman Yao. The rules are outdated and weakens U.S. companies' competitive edge in the global market, he said.

The Obama administration pledged earlier this year to double U.S. exports in the next five years and create 2 million jobs from it. Green energy will play a critical role in these new jobs, officials said.

Locke said the U.S. hopes to increase its exports to emerging markets, including China, India, Brazil and Russia. China especially will be a key part of the U.S. strategy to boost exports.

In addition to the always-hot trade and economic issues, next week's dialogue will also include sensitive regional security issues.

U.S. Secretary of State Hillary Clinton embarked on her three-Asian-nation tour, arriving in Tokyo on Friday. She stayed for a few hours and talked about the relocation of the U.S. Marine's Futenma air base in Okinawa to the Japanese side.

After the two-day Strategic and Economic Dialogue in Beijing, she will fly to Seoul to discuss the latest developments in the sunken Republic of Korea (ROK) warship incident.

In Washington this week, Kurt Campbell, the State Department's head of East Asian and Pacific affairs, said Clinton, in her dialogue with China, will emphasize issues including regional security, global finance, and climate change.

Campbell also mentioned the U.S.-led drive for new nuclear sanctions against Iran, instability in Afghanistan and Pakistan, and developments on the Korean Peninsula, where an ROK report released on Thursday accused the Democratic People's Republic of Korea of sinking one of its navy ships, causing the loss of 46 lives.The central issue during Clinton's Asian tour would be assessing how to respond to the latest development in the warship incident, Campbell said.

Winning concessions on other key topics such as the exchange rate reform of Chinese yuan, climate change and regional securities, won't be easy, analysts said.

Meanwhile, China will also challenge Washington over Taiwan, Tibet and the U.S. naval presence off the Chinese coast, but few concrete breakthroughs are expected.

Despite low expectations, the two-day dialogue is a powerful demonstration of the depth and complexity of the U.S.-China relationship, and will also be a gauge of the state of those ties after they hit a rocky patch earlier this year, said the Associated Press.

"I expect the (dialogue) to give U.S. an atmospheric-barometric reading on just how much trust has been lost and just how important the two sides view their continuing strategic cooperation," said Richard Baum, a China expert at the University of California, Los Angeles, in an Associated Press report.

Professor Shen Dingli with Shanghai-based Fudan University said the dialogue is a stabilizing mechanism and each side wants to use it shape the other's behavior. "Only a mutually beneficial deal will work here; otherwise, it won't get very far," he said.

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