Chinese President Hu Jintao and U.S. President Barack Obama on Saturday discussed bilateral relations and voiced their opposition against protectionism.

Chinese President Hu Jintao (L) meets with U.S. President Barack Obama in Toronto, Canada, June 26, 2010. [Xinhua/Ma Zhancheng]

Meeting on the sidelines of a Group of 20 (G20) summit in Toronto, the two leaders also discussed important world and regional issues of common concern.

The Chinese president said that the world economy is undergoing recovery but potential instability and uncertainty remain, and that the financial sector is not free from systemic risks. The European sovereign debt issue is a cause for concern and the world cannot afford to underestimate its impact on global economic recovery.

China and the United States should continue boosting coordination of their macroeconomic policies and stick to the principle of dealing with trade frictions through dialogue on equal footing, Hu said.

China has no intention to pursue a trade surplus against the United States and has been proactively taking measures to increase imports from the country, he said.

Hu called on the United States to refrain from trade protectionism and gradually reduce barriers to high-tech exports to China in order to achieve healthy and balanced bilateral economic and trade relations.

The Chinese president said progress has been made in bilateral ties recently, including the success of the 2nd round of the China-U.S. Strategic and Economic Dialogue last month.

China and the United States should work together to address common challenges, Hu said.