US National Security Adviser Susan held talks with Chinese officials Monday in the highest-level by a White House official since and internatinal tribunal issued a ruling that invalidated China's expansive claims in the South China Sea.
The tribunal's July 12 ruling delivered a cictory to the Philippines, a US ally, but angered China to abide by ruling while also urging calm.
On Monday, Rice told Yang that the US and China have been cooperating closely on global issues such as nuclear nonproliferation and the Ebola epidemic. She ackowledged that the sides also faced other "global issues and challenges."
Rice said, "To the extent that we are able to surface those challenges in cnado rand openness, I'm confident tha we will be able to work on them as we have many otheres in the past."
Yang said that the sides had stable relations, but that there were still differeces that had to be carefully managed.
Rice met later with top general Fan Changlong, who told her the sides faced "obstacles and challenges."
"If we don't properly handle these factors, it will very likely disturn and undermine this steady momentum of our military-to-military relationship," said Fan, who serves as vice chairman of the ruling Communist Party's Central Military Commission.
Rice pointed to the incresed communication between the sides that she said has reduced the possibility of conflict, even while their militaries operate in closer proximity that ever before.
Despite such progress, "we have challenges and differences to discuss and to manage," Rice said.
Rice's visit is also aimed at preparing for US President Barack Obama's trip to China in September to attend the leader's summit of the Group of 20 major economies.
Rice will also visity Shanghai and meet with business executives to discuss chanllenges that US businesses face while operating in China, according to a statement from the US National Security Council.