The U.S. government saw trade relation with China "produced concrete results" in 2009 and is optimistic of progress in 2010, according to a report released by the U.S. Trade Representative's office on Tuesday.

"Bilateral engagement produced concrete results in a number of important areas in 2009," the U.S. Trade Representative's office ( USTR) said in its eighth annual report to the Congress on how well China is complying with its World Trade Organization obligations. "The two sides were able to resolve significant trade irritants, while also achieving incremental but important progress in other areas."

On the bilateral front, the United States and China pursued a robust set of formal and informal meetings and dialogues in 2009, including numerous working groups and high-level meetings.

The two governments held their first Strategic and Economic Dialogue (S&ED) meeting in July 2009 and the 20th meeting of the U. S.-China Joint Commission on Commerce and Trade (JCCT) in October 2009.

The report, the first issued by President Barack Obama's administration, said that "the United States is optimistic that significant progress is obtainable in 2010."

"China has taken many impressive steps over the last eight years to reform its economy, while implementing a set of sweeping WTO accession commitments," the report said.

"China's implementation of its WTO commitments has led to increases in U.S. exports to China, while deepening China's integration into the international trading system and facilitating and strengthening the rule of law and the economic reforms that China began 30 years ago."

Since China's accession to the WTO in 2001, U.S. exports of goods to China have increased by nearly 270 percent, rising from a 2001 total of 19 billion dollars to 70 billion dollars in 2008, said USTR.

While U.S.-China trade slowed in 2009 like trade in the rest of the world in the face of the global economic downturn, China remains the third largest goods export market of the United States. China is also a substantial market for U.S. services, as the cross- border supply of services totaled 16 billion dollars in 2008.

"Despite the many remaining challenges, China's WTO membership has continued to provide substantial ongoing benefits to the United States."

"U.S.-China trade has expanded dramatically, providing numerous and substantial opportunities for U.S. businesses, workers, farmers and service suppliers and a wealth of affordable goods for U.S. consumers," said the report.

Although progress has been made, trade disputes remain between the world's two major trade partners.

The U.S. government filed many dispute cases against China in 2009, which aroused critics about the Obama administration's protectionism.

USTR said it preferred to resolve disputes with China through dialogue, but would not hesitate to take action at the WTO if necessary.

The U.S. trade deficit with China is expected to fall this year, along with the overall slump in world trade.