China and the United States have signed an agreement to step up energy and environmental protection cooperation during the on-going fifth round of the Strategic Economic Dialogue.

At the signing ceremony in Beijing on Thursday, China's vice premier Wang Qishan says the framework document for the green partnership project was an important achievement. He hopes both sides will further strengthen copperation in energy field in the future.

Wang Qishan also calls on Washington to restore stability in the financial markets and prevent the financial crisis from affecting China's assets and investments in the US.

"We hope the US side will take the necessary measures to stabilize the economy and financial markets, as well as to guarantee the safety of China's assets and investments in the US. At the same time to strengthen the cooperation of both sides in terms of financial monitoring and the reforms of international financial institutions."

Wang Qishan says it is imperative for the two countries to restore market confidence, restrain the crisis from spreading, and avoid a global economic recession, especially the impact for developing countries.

Wang Qishan reported that China has taken various measures to maintain a stable and relatively fast growth of its economy. The major measures include a 580 billion US dollar stimulus package and the recent cut in interest rates to boost domestic demand.

As the Chinese currency slipped on Thursday against the US dollar by for the fourth day, Chinese Minister of Commerce Chen Deming said that it was normal to see the renminbi declining.

"Recently the Chinese Renminbi has dropped a bit against the US dollar and I think that this is quite normal. The Renminbi is still quite stable against the Euro and the Japanese yen, so we should look at the situation as the US dollar becoming stronger recently, rather than the Renminbi devaluing."

Co-chairing the meeting with Wang Qishan, US Treasury Secretary Henry Paulson agreed that the two countries should work together to cope with the macroeconomic risks.

"We will continue to work on strategies for managing macroeconomic risks and promoting balanced growth; on open investment and trade policies, on our respective roles in international institutions and to strengthen cooperation in energy and the environment. And, for the first time during the SED, the US and China will focus on how we can work together through international forums to strengthen the global economic system."

The twice-a-year Sino-U.S. Strategic Economic Dialogue, launched in 2006, is designed to address the long-term growth of economic ties between the two nations.

But this round also is due to touch on how to manage macroeconomic risk.