US President Barack Obama announced yesterday that he and Chinese President Xi Jinping had reached a “common understanding” on steps to curb cyberspying and agreed that neither government would conduct economic espionage in cyberspace.

The two leaders also unveiled a deal to build on a landmark emissions agreement struck last year, outlining new steps they will take to deliver on pledges they made then to slash their greenhouse gas emissions.

Speaking after White House talks during Xi’s first US state visit, Obama quickly homed in on the thorniest dispute between the world’s two biggest economies – growing US complaints about Chinese hacking of government and corporate databases.

“I raised, once again, our rising concerns about cyber threats to American companies and American citizens. I indicated that it has to stop,” Obama told reporters at a joint news conference, with Xi standing at his side. “Today I can announce that our two countries reached a common understanding on the way forward.”

The White House said the two leaders agreed to create a senior expert group to further discuss cyber issues and a high-level group to talk about how to fight cybercrime that will meet by the end of 2015. Even as the White House rolled out the red carpet for Xi, behind the pomp and pageantry were tensions over a litany of issues, including Beijing’s economic policies, territorial disputes with its neighbours and China’s human rights record.

Obama greeted Xi on arrival at the White House yesterday for an elaborate ceremony on the South Lawn, including a military honour guard and 21-gun salute. US and Chinese officials sought to cast the talks in a favourable light by showcasing at least one area of cooperation – the global fight against climate change.