Dai will hold talks with US Deputy Secretary of State Robert Zoellick in an effort to deepen an exchange of views on international and bilateral issues of common concern, the ministry said.

The two sides decided to set up the high-level dialogue last year after a summit between the two presidents.

US President George W. Bush earlier refused to engage China in a "strategic partnership," saying the two nations were "strategic competitors".

The first round of strategic dialogue was held in August when energy, security, terrorism, economic development and trade, democracy and human rights were discussed.

While Washington is concerned about its ballooning trade deficit with China and China's rapidly rising military spending, Beijing fears Washington will try to limit its growing power.

Despite lucrative trade ties, the relationship has been bogged down over Beijing's insistence that Taiwan is a part of China despite the island territory enjoying some 60 years of de facto independent rule.

For China, the Taiwan issue is closely linked to the heavy US military presence in the region, especially in Japan and South Korea, only a stone's throw away from Taiwan.

"A general point that I made is that across some seven administrations, the goal of US policy is to integrate China into the world security, economic and political system..." Zoellick said after his August visit to Beijing for the first round of talks.

"And that has been accomplished if you consider China is a member of the UN Security Council, a member of the WTO (World Trade Organization), a member of ozone-depletion treaties, and non-proliferation arrangements and a host of others."

Zoellick said the talks were useful in allowing each side to listen to the other's concerns.

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