The two biggest economies in the world wrapped up their annual bilateral dialogue on Wednesday.

During the two-day Strategic and Economic Dialogue between the U.S. and China in Beijing, the two sides clashed fiercely over such contentious issues as the sovereign conflicts in the South China Sea and the yuan’s exchange rates.

On the North Korea nuclear issue, the two countries agreed in principle that they will not tolerate a nuclear-armed North but showed subtle differences over the matter.

The most contentious issue during this year’s dialogue was the South China Sea. China still asserts that the sea has been its territory since its creation, while the U.S. is calling on China to respect the international law and the freedom of navigation.

China also expressed opposition to the independence of Taiwan, a warning directed at a growing partnership between the U.S. and the new Taiwanese government led by Tsai Ing-wen.


China and the U.S. also argued intensely over the issues of trade and the yuan, but at the same time they also reached significant agreements on the issues.

China agreed to cut its excess steel production and restrain from artificially depreciating the yuan.

Overall, diplomatic observers assessed the dialogue as a win-win negotiation for both countries, as China was able to publicize its efforts to live up to its growing international influence while the U.S. reaped the practical benefits from it.

On the North Korean issue, China agreed that it will not accept North Korea as a nuclear state, but it was largely viewed as the reaffirmation of Beijing’s long-standing stance on the issue.

However, experts point to the timing of the reaffirmation, as it came after the North sought to enhance its relations with China by sending its ruling Workers’ Party Vice Chairman Ri Su-yong to Beijing.

All things considered, the U.S. and China agreed on the North Korea nuclear issue at a usual level, but the agreement sends a signal that the international community will not loosen its sanction measures on the North for the time being.