"I'm happy to note that thanks to the joint efforts of both sides recently, real progress has been made in this relationship," Hu said, noting that both countries were confronted with tackling the economic recovery.

"We need to continue to follow the spirit of staying the same course and uniting together," Hu said.

"We also want to strengthen the communication and coordination with the US side on major regional and international issues."

In May, the two economic giants signalled progress in their pivotal relationship at high-profile annual talks after months of tension.

China and the United States have been at loggerheads on an array of fronts ranging from trade and the value of the yuan to Internet freedom and Taiwan.

But the ties appeared to warm with a visit to Beijing last month by US Secretary of State Hillary Clinton and Treasury Secretary Timothy Geithner.

Obama warmly welcomed Hu on Saturday, saying "it's wonderful to see you again."

"We worked very hard and our teams worked very hard in the past 15 months to build a relationship of trust, of mutual confidence, and it's my belief that we've accomplished many things," the US president added.

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