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"Without successful cooperation at the sub-national level, it would be very difficult to achieve practical results for cooperation at the national level. That is why I place great importance on China-U.S. sub-national cooperation," he explained.

"We embrace the RMB, we offer it as an alternative method of financing and alternative means of exchange," he said.

Xi's state visit, which will conclude on Friday, is the first by a Chinese president since 2005.

"Whether China and the United States can eventually build a new model of major-country relations mainly depends on their interaction in the Asia-Pacific," Wu Xinbo, director of the Center for American Studies, Fudan University, told Xinhua.

It would be "a very healthy thing" if the two leaders could show some real progress towards reaching the investment treaty, said Fred Bergsten, a senior fellow and director emeritus at the Peterson Institute for International Economics.