The yuan may become the focus of the talks

The meeting is the result of a summit between the two nations' presidents, George W Bush and Hu Jintao, last year.

The Treasury said it would cover a range of issues, but would not go into detail about whether it would focus on the dollar-yuan exchange rate.

The US has blamed China for keeping the yuan weak to boost its economy, saying the policy is destroying US jobs.

Argument

So far, the rhetoric has had little effect.

The yuan remains pegged at a rate of about 8.30 to the dollar, despite the fact that the Chinese economy is growing rapidly and its trade surplus with the US is expanding.

The Chinese rightly point out they can't do it tomorrow because their financial structures are so rudimentary... But they are beginning to take steps John Snow, US Treasury Secretary

That, US industrial groups say, undervalues the Chinese currency by as much as 40%.

China has said it will consider revaluation or pegging the yuan to a wider basket of currencies - but refuses to set a timescale.

Volatility, the Chinese fear, could have serious consequences both for unemployment - a serious problem - and a banking industry burdened with billions in bad debts.

Walk softly

Recently, the US administration has moderated its language.

Treasury Secretary John Snow told a Senate committee on 13 February that he understood the Chinese predicament.

"They have acknowledged the need to move to a flexible exchange rate," he told senators.

"They rightly point out they can't do it tomorrow because their financial structures are so rudimentary.