The third meeting of the Strategic and Economic Dialogue (S&ED) between China and the United States, to be held in Washington today, will have a big influence on the smooth sailing of bilateral relations.

Given the two country's clout in the world's economic, security and political landscapes, the two-day event is sure to grab worldwide attention.

The highest-level mechanism for bilateral cooperation, the S&ED has proven to be a platform for decision-makers to grasp the dynamics of bilateral ties. It helps the two governments identify common interests and common priorities in bilateral or multilateral arenas.

Given that the meeting was held just one week after Washington announced its dramatic success in hunting down Osama bin Laden on May 1, the rest of the world is also interested in knowing how Beijing and Washington will project their cooperation on security issues in the post-bin Laden era.

Besides the demise of bin Laden, several major events have taken place so far this year including political turmoil in some African countries and Japan's earthquake and ensuing nuclear woes. Luckily, Sino-US relations have maintained a healthy momentum.

In January, Chinese President Hu Jintao paid a state visit to the US. The two leaders have vowed to "work together to build a cooperative partnership of mutual respect and mutual benefit." Since then, officials on both sides have showed commitment to translating this strong political will into action.

In March US President Barack Obama nominated Secretary of Commerce Gary Locke as the next US ambassador to China. The move is widely perceived as signaling the importance the Obama administration has attached to ties with China.

However, old and new issues are standing in the way. Aside from US arms sales to Taiwan and US pressure on China to appreciate the yuan, the two also hold completely different views towards their trade deficits.

Many in the US have aired growing concerns about China's rising economic and political clout in the international arena. In fact, China has no intention of challenging the US' worldwide supremacy as it will stick to the road of peaceful development.

Experience in the past indicates bilateral relations turn sour anytime Washington chooses to ignore or even impair China's core interests and major concerns.

This year's S&ED meeting presents a good opportunity for the two governments to show their ability to manage the world's most important bilateral ties in their own interests, as well as those of the world.