ANNAPOLIS, Maryland -- The U.S. and China agreed to launch negotiations to establish a bilateral investment treaty, which could expand opportunities for U.S. companies in the fast-growing Chinese economy, U.S. officials said.

U.S. and Chinese officials announced the agreement at the end of the two-day Strategic Economic Dialogue, which was aimed at defusing simmering economic tensions between the two nations.

Whether the two countries will be able to come to a deal on a treaty isn't a certainty, with the U.S. concerned about whether issues such as market access in China can be appropriately addressed.

Private-sector representatives who have been following the talks, which have continued for more than 1½ years, have said any deal likely won't cover certain areas, such as the financial-services sector.

President Bush Presses Congress
To Lift Offshore Drilling Ban

WASHINGTON -- President Bush pressed Congress to take quick steps to boost oil production in the U.S., sharpening the clash with Democrats over energy policy as consumers struggle with soaring gasoline prices.

Speaking in the Rose Garden, Mr. Bush outlined a four-point plan to tackle the imbalance between supply and demand that the White House believes is the main force pushing oil prices to record levels. He called for Congress to lift a moratorium on drilling off the U.S. coast, open Alaska's Arctic National Wildlife Refuge to drilling, develop oil shale resources and expand domestic oil-refining capacity.

Stocks Jump 3.5%
In Rally Reflecting
Cautious Optimism

WASHINGTON -- The Federal Reserve continued its two-front attack on the credit crunch with a steep rate cut, and hinted at more to come.

The cut was less than financial markets wanted. But in a sign the Fed's prior efforts to boost lending through unconventional means may be getting some traction, stocks soared, buoyed by earnings reports from two big investment banks.

The Fed cut its short-term interest-rate target 0.75 percentage point to 2.25%, not the full point that markets had been expecting. It was the largest disappointment the Fed has delivered to markets since the central bank began cutting rates in September. the move was also a signal that because of the Fed's concerns about inflation, it expects its other initiatives to bear more of the burden of stimulating growth.