WASHINGTON - THE US and China need to work together to overcome the world economic crisis and fight protectionism, Chinese Foreign Minister Yang Jiechi said on Thursday.

The two economic powers should work bilaterally and at next month's summit of 20 major developed and emerging economies in Britain to coordinate economic stimulus efforts and give confidence to a battered global economy, he said.

'The priority for China and the United States at the moment is to tackle the international financial crisis through intensified cooperation, and work together to maintain and promote world financial and economic stability,' said Mr Yang.

'We do hope that there will be a joint effort to fight against protectionism. The United States and China should set a good example for others,' he said.

Mr Yang called for concerted efforts to improve regulation of the international financial system and said 'better coordination' was needed among China, the United States and other countries who have announced stimulus plans ahead of the G20 summit on April 2.

'We have to make sure that people will look at the bright side of our efforts,' he said in remarks to the Center for Strategic and International Studies, a Washington think tank.

'The magic word is confidence,' he said. 'I hope the G20 meeting will boost people's confidence.'

On Wednesday, Mr Yang met Secretary of State Hillary Clinton and Treasury Secretary Timothy Geithner.

Mrs Clinton praised the moves that China has already taken to stimulate its economy as a 'very positive step.'

Mr Yang is scheduled to meet President Barack Obama later in the day on a visit to coordinate a meeting between Obama and Chinese President Hu Jintao next month on the sidelines of the G20 meeting. -- REUTERS