Yul Kwon:
It may very well be Hilary Clinton's last trip as Secretary of State. It's known that she expects to leave after November's presidential election. But she's not going quietly. Clinton has spoken out regarding friction between China and its neighbors stretching from Vietnam to Japan. China says the disputes are none of America's business, but it also didn't want to make them the focus of Clinton's visit. Here's China's official broadcaster, CCTV.

Reporter:
Building strong, solid relations. President Hu Jintao held talks with the US Secretary of State Hilary Clinton on Wednesday. President Hu showed his appreciation to Clinton, who is on her 7th visit to China as America's top diplomat, for her effort in promoting
China-US ties.

Hu Jintao:
Madame Secretary of State attaches great importance to China-US relations and you have put a lot of effort into promoting the development of our bilateral relations. We appreciate this a great deal.

Reporter:
Regarding economic ties, Hu Jintao says promoting China-US economic co-operation is beneficial to both countries. China hopes the US will resist trade protectionism and provide a fair environment for Chinese companies to invest in the US. For her part Clinton says the US is committed to increasing co-operation with China in various fields such as new energy and infrastructure. Hilary Clinton also met with Premier Wen Jiabao. During the talks China and the US both addressed hopes for stable relations. Premier Wen said the US should respect China's territorial sovereignty and play a constructive role regarding the Asia-Pacific co-operation and dialogue. Earlier in the day, Clinton joined foreign minister Yang Jiechi for a press conference. One of the issues on the agenda was the South China Sea. Yang Jiechi repeated China's statements that it is ready to discuss maritime disputes but only through bilateral talks.

Yang Jiechi:
For China and our neighboring countries the South China Sea is really a lifeline for exchanges, trade, and commerce. There is no problem for freedom of navigation for now. And there won't be any problems in the future.

Reporter:
The US wants China and the other claimants to adopt a binding code of conduct for the region.

Hilary Clinton:
It is timely now to proceed with that work, and help to lower the tensions and, create the code of conduct, in the next period, hopefully in preparation for the East Asia Summit.

Reporter:
This is Clinton's second China trip this year. Observers say both countries should focus on narrowing their differences and work together to tackle the challenges of a changing world. Wang Xinye, CCTV.