U.S. President Barack Obama pressed his Chinese counterpart over human rights during his first state visit to Washington in more than four years, but said Wednesday those discussions won't prevent the two countries from establishing stronger trade ties or co-operating on a range of issues, including fighting terrorism.

During a joint White House press conference following a private meeting in the Oval Office, Obama and Chinese president Hu Jintao said they agreed to work more closely on a range of issues. Obama announced the two sides agreed to business deals worth an estimated US$45 billion.

But Obama also said that the two sides still have differences on rights that were "an occasional source of tension between our two governments."

Obama later added: "We have some core views as Americans about the universality of certain rights: freedom of speech, freedom of religion, freedom of assembly."

While Hu did not answer the first question from a reporter about human rights during the news conference, saying he did not hear the translation. But he did respond to a follow-up question by saying that his country's human rights record must be considered against its position as a still-developing country.

Despite this, Hu said, "a lot still needs to be done in China in terms of human rights."

While promising "to improve the lives of our people and promote democracy and the rule of law," Hu also said China is "willing to learn" from other countries.

Speaking through a translator, Hu said both sides should "respect each other's sovereignty, territorial integrity and development interests," echoing his sentiments from a statement he gave earlier Wednesday during a welcome ceremony on the South Lawn of the White House.

In addition to the business deals, which Obama said would create about 235,000 jobs, the morning meeting also produced a vow from Hu that China will boost efforts to curb theft of intellectual property.

During Wednesday morning's welcome ceremony, Hu hinted that Beijing will not be pushed on sensitive issues, such as its issues with Taiwan or the way it manages its currency.

But Obama said the two nations have "an enormous stake in each other's success," as he welcomed Hu.

Obama and Vice-President Joe Biden, along with their wives, greeted Hu and his delegation during the highly formal morning ceremony.

The welcome ceremony also saw the two presidents inspect troops and briefly address those in attendance.

The visit is in stark contrast to Hu's last state visit, when a Falun Gong protester interrupted the proceedings and the official "People's Republic of China" title was not used. There were no such missteps in the early part of Wednesday proceedings.

Hu arrived in the United States on Tuesday, at a time when Americans are apprehensive about China's growing economic influence and military power.

Economists predict that the Chinese economy will become the largest in the world within two decades, leaving the once-mighty U.S. economy in the rearview mirror.

But the two economies still have much to gain from one another in terms of business opportunities and other economic relationships -- though China and the U.S. don't see eye-to-eye on a variety of policy issues.

A long-running currency dispute is a particularly thorny issue for U.S.-China trade.

American companies say the Chinese government keeps its currency lower than the U.S. dollar to give its own businesses a competitive advantage. And both Democratic and Republican lawmakers say they have plans to punish China for these practices.

Obama said he pressed the currency issue with Hu.

"President Hu's concerned, understandably, about how rapid this transition takes and the disruptions that may occur," Obama said during the afternoon news conference in the East Room. "But I'm confident that it's the right thing to do."

Wednesday's meetings followed a private dinner at the White House including Obama, his national security adviser Tom Donilon and U.S. Secretary of State Hillary Clinton, on Tuesday night. Hu attended with two top Chinese officials. No official-note takers were present at the event and there was no summary of the discussions offered to the press.

By Wednesday evening, the tone at the White House took a glamorous turn as the president and first lady hosted an all-American state dinner for Hu, signalling the extent to which Washington wishes to smooth relations between the two countries.

Celebrities such as singer Barbra Streisand and her husband, actor James Brolin, action film star Jackie Chan and figure skater Michelle Kwan joined politicians and other dignitaries for a night of ice cream, apple pie and all-star jazz.

With files from The Associated Press