The countries are to explore how to co-operate in tracking down so-called "dirty assets" taken abroad by corruption suspects.

China and the US will explore mutual recognition and enforcement of seizure orders for “dirty assets” which have been taken abroad by corruption suspects, the Chinese Foreign Ministry has said, according to Reuters.

The comments came after a meeting between President Barack Obama and President Xi Jinping.

At present, China does not have extradition treaties with the US or Canada, the two most popular destinations for suspected economic criminals, the report said.

So far Western countries have been wary of signing extradition deals with China in part because of worries about China’s judicial system and harsh treatment of prisoners.

China and the US would push forward with the handling of agreed upon "important corruption cases”, the Chinese Foreign Ministry was quoted as saying.