Beijing promised to cut down on "steel overproduction" on Tuesday as the U.S. and China wrapped up the two-day annual Strategic and Economic Dialogue in Beijing.  

The issue of China's excessive dumping of cheap steel in America and other international markets was one of the main topics of discussion at the high-profile annual bilateral summit.

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U.S Treasury Secretary Jack Lew on the opening day had chided China for allowing a glut of steel and aluminum to flood across international markets.

China's assurance to cut down on 'steel glut' comes as a huge relief for American steel companies as their profits have tumbled over the past year due to an onslaught of cheap Chinese steel imports.

On the final day of the summit, Chinese officials also promised to avoid competitive devaluation of the Yuan and shut down unprofitable "zombie enterprises."

However, the U.S and China failed to make any tangible progress on the contentious issues of the South China Sea dispute and North Korea nuclear program during the two-day summit. Instead, officials from both nations accused each other of militarizing the contested South China Sea region.

Beijing also reiterated that it will not accept the ruling of the Permanent Court of Arbitration (PCA) on the maritime territorial dispute. The ruling by the arbitration court in the Hague, Netherlands is expected in the coming weeks.          

Although both countries agreed to put more pressure on North Korea to cease its controversial nuclear weapons program, they argued over the approach

While the U.S. favored a more confrontational approach, which includes enforcing more tough economic sanctions, China prefers to revive dialogue and staunchly opposes the deployment of the THAAD missile to South Korea.

Tagschina, US, China and US, China steel overcapacity, China steel