The United States and China reached agreements on certain key issues in their economic and trade consultations in Beijing after the second day of negotiation.

The two nations agreed to set up a work mechanism to keep close communication channels in order to resolve trade disputes, Chinese news agency Xinhua reported.

Chinese Vice Premier Liu He held talks on economic and trade issues of common concern with the US delegation led by US president's special envoy and Treasury Secretary Steven Mnuchin.

Both sides agreed that a sound and stable China-US trade relationship is crucial for both and committed to resolve relevant economic and trade issues through dialogue and consultation.

They also committed to solve intellectual property rights as well as tariff and non-tariff issues, reaching consensus in some areas.