Vice President Joe Biden today said that there is an urgent need for US and China to agree on a "rules based system" for rapidly evolving new areas ranging from cyber space to outer space.

"There's an urgent need to agree on a rule-based system for rapidly evolving areas ranging from cyberspace to outer space - a new set of rules. Together, collaboratively, we have an obligation - China and the US - to shape these rules," he said in his opening remarks to the two-day annual US-China Strategic and Economic Dialogue here.

The US, he said, believes strongly that whenever possible, China needs to be at the table as these new rules are written.

"Responsible competition, adhering to these common rules - both old and new - in my view will be the essential ingredient necessary to manage areas of disagreement, and to build the long-term sustainable US-China relationship," he argued.

Biden said the rule-based order that emerged in the 20th century has served the world extremely well including China.

It provided the ballast for remarkable peace and prosperity that ensued after the war, he added.

"We'd be foolish today to hastily discard or ignore all of it. But we have to recognise that some of the rules, such as environmental and labour standards, have to be updated in the 21st century. Some institutions, such as the International Monetary Fund, they should be updated as well and revised to reflect the world as it is, not as it was," Biden said.

Chinese Vice Premier Liu Yandong said China and US should keep the bilateral ties on the right track.

"As long as our two countries adopt an overall perspective, respect and accommodate each other's core interests and be committed to a constructive approach to reduce misunderstanding and miscalculations, we can manage our differences and maintain our common interests," he said.

The two countries, he said, has taken a number of very positive steps over the course of the past year.

These include, perhaps first and foremost, an historic announcement on climate change, Liu said.

"In addition, nurturing confidence between our militaries as we have increased our mil-to-mil engagement, extending visa validation reciprocity, working very solidly together as partners in the P5+1 negotiations on Iran, and helping our friends in West Africa combat the deadly Ebola virus," Liu said.