BEIJING, Aug. 1 -- A senior U.S. financial official says the American government is satisfied with the first round of the China-U.S. Strategic and Economic Dialogue.

    In an interview with Xinhua Thursday, the U.S. Department of Treasury's economic envoy to China, David Dollar, said both sides were able to explain their macroeconomic policies in detail. They agreed- U.S. needs to increase savings as well as reduce the fiscal deficit. China needs to increase consumption and take measures to stimulate the economy.

    Soundbite: David Dollar, Economic envoy to China "All leaders involved said it is important that we have a frank exchange. There would be areas that we do not agree. But this was a particularly harmonious discussion on the economic side because there is no big disagreement."

    Dollar says the talks will set the framework for how the two countries will work together on economic policy in the upcoming year.

    Soundbite: David Dollar, Economic envoy to China " We will discuss keeping open trade, and opening up more on the investment on both sides, so we will have investment forum in next few months to go into details about some restrictions on investment of both sides and how we can ease those. We will also have the joint committee on commerce and trade, which is focused very specifically on trade liberalization on both sides. "

    Under the framework of the new dialogue, Chinese officials and their U.S. counterparts will meet once rather than twice a year. Dollar says it will help to create a more focused agenda for the two countries.

    Soundbite: David Dollar, Economic envoy to China "About one year from now, we will meet in Beijing. Hopefully, we can look back to a lot of progress, and we can also update the agenda for the next 12 months beyond that."

    Dollar, the previous head of the World Bank's office in China, was at the talks which took place July 27 and 28 in Washington.

    Xinhua News Agency correspondents reporting from Washington D.C.