"We've discussed the importance of balanced growth in both our nations, and the role of competitive markets in spreading the benefits of growth to all our people," said U.S. Treasury Secretary Henry Paulson.

"We also both recognize the need to fight economic nationalism in our two nations," he said in a closing statement.

China's top negotiator, Vice Premier Wu Yi, called the China-U.S. Strategic Economic Dialogue, held in a resort outside Beijing, a "complete success." She cited progress on food safety, environmental protection and dealing with globalization challenges.

"Both sides need to discuss Sino-U.S. economic relations from a strategic point of view and map out a better blueprint for future U.S.-China economic trade relations and cooperation," Wu said.

Their comments came just hours after the U.S. Commerce Department released figures showing that U.S. trade deficit with China jumped 9.1 percent to $25.9 billion in October, a record for a single month.

The rise reflected record imports from China, led by large gains in shipments of toys and games and televisions as retailers stocked their shelves for Christmas. The demand for Chinese imports is still strong despite a string of high-profile recalls of Chinese products from toys with lead paint to defective tires and tainted toothpaste.

So far this year, the U.S. trade imbalance with China is running at an annual rate of $256 billion, putting it on track to surpass last year's record $233 billion deficit.

Those record deficits have triggered a backlash in the U.S. Congress, with dozens of bills introduced seeking to penalize China for what critics see as unfair trade practices contributing to the loss of 3 million U.S. manufacturing jobs since 2000.

American officials say China must allow greater access to its markets for American goods and services, while Beijing says it can't be blamed for enthusiastic U.S. consumer demand for inexpensive Chinese products and urged Washington to lift restrictions on high-tech exports.

Japanese, American and European critics also say China's currency, the yuan, is undervalued, giving Chinese exports an unfair advantage and inflating the nation's trade surplus. China began allowing a slow rise in the yuan's value in July 2005. Since then, it has appreciated 8.9 percent against the dollar in tightly controlled trading.

In the talks, Paulson reiterated calls for a faster yuan appreciation, saying that would offer China more effective leverage when dealing with rising inflation and asset bubbles amid signs the economy was overheating.

He said the talks "clarified perceptions and increased understanding, which is vital to keeping our economic relationship on an even keel."

Wu said the fourth round of the Strategic Economic Dialogue would be held in Washington in June.

On Wednesday, the U.S. Environmental Protection Agency signed a memorandum of understanding with the China's General Administration of Quality Supervision Inspection and Quarantine that proposes joint training and inspections.

That joins earlier agreements on biofuel development, and safety of food and animal feed, drugs and medical devices.