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"Our people have benefited greatly and will continue to benefit from the goodwill of China," Hood said at the banquet, adding that his country appreciates China's support on infrastructure, sports facilities, overseas scholarship and cultural exchange.

The delegation, led by Assistant Foreign Minister Liu Jianchao, also expressed concerns over Japan's security moves in recent years and expected Tokyo to adhere to a path of peaceful development and play a constructive role in maintaining peace and stability in the region.

A report from the State Council on strengthening the management of government debt would be reviewed and research on how to improve budgeting for state capital operations would be carried out, he said.

Hua called on relevant sides to enhance cooperation so as to create favorable conditions for consultations on the COC.

This year's talks, he added, will emphasize the positive momentum sustained in the U.S.-China military-to-military relationship over the past year, which included historic agreements to establish new confidence building measures between the two militaries, and endorse the robust program of engagements planned for the rest of the year.