Xi, opening the two-day annual talks in Beijing, said problems in bilateral ties are not to be afraid of as long as both sides work to solve them.
    
Considering their different histories and cultures "it is natural that China and US may have different views and even frictions on certain issues", Xi said.
    
"This is what makes communication and cooperation even more necessary," he said at the joint opening ceremony of the sixth China-US Strategic and Economic Dialogue (SED) and the fifth China-US High-Level Consultation on People-to-People Exchange.
    
"Our interests are more than ever interconnected," Xi said, adding that the two nations "stand to gain from cooperation and lose from confrontation".
    
"If we are in confrontation it will surely spell disaster for both countries and for the world," he said.
    
Xi called on the need for Pacific powers to "break the old pattern of inevitable confrontation".
    
"One can ill afford a mistake on fundamental issues, a mistake that may possibly ruin the whole undertaking," he said.
    
In Washington, US President Barack Obama also issued statement coinciding with the beginning of the talks here, saying US is committed to the goal of developing a "new model" of relations with China defined by increased practical cooperation and "constructive management" of differences.
    
Speaking on the "new model", Xi said, "Building a new model of major-country relationship between China and United States is unprecedented in history. There is no ready-made experience from which to learn."
    
Xi said China and US have overcome difficulties and continued to progress in the past 35 years, thanks to the leaderships understanding of contemporary conditions.
    
"Today, our two countries should better observe the times and think creatively to open new prospects in bilateral cooperation," Xi said.

US delegation led by Secretary of State John Kerry and Treasury Secretary Jacob Lew will hold two-day talks with Chinese Vice Premier Wang Yang and State Councilor Yang Jiechi to strike what Chinese officials describe a "new type" of relationship to further bilateral ties.
    
This year's strategic dialogue covers a wide range of topics of domestic and foreign policy, including climate change, science and innovation, Sudan and South Sudan, UN peacekeeping and the illegal trade in animals and plants, as well as interactions in the Asia-Pacific region, officials said.

The bilateral talks come as tensions between the two nations have risen in recent months wracked by maritime disputes.
    
Both sides do not see eye to eye on maritime tensions between China and Japan over the disputed islands. They also have differences over the South China Sea disputes China has with Vietnam and other neighbours.
    
During a meeting between Xi and US President Barack Obama in California in June 2013, they decided to build a new-model relationship featuring no conflict and no confrontation, mutual respect and win-win cooperation.
    
The consensus proceeds from the conditions of the two countries and the world and serves the fundamental interests of the peoples, Xi said.
    
It is a strategic decision and reflects the two countries' will to avoid friction between major powers, he said.
    
Xi called on both sides to keep up with the times in developing bilateral relations.
    
China alleges that US Pivot to Asia-Pacific with plans to deploy large military assets encouraged countries with maritime disputes to strike belligerent postures against it.
    
While China-Japan trouble over the disputed islands in East China Sea has heightened military tensions between the two countries, Beijing's attempts to deploy an oil rig in the disputed South China Sea in May resulted in breakdown of relations between China and Vietnam.
    
The incident resulted in anti-China riots in Vietnam in which over 400 factories mostly set up by Chinese investors were burnt down. Two Chinese were killed and over 100 injured in the riots.
    
Over 7000 Chinese workers have been evacuated back to their homes.
    
Philippines, which along with Vietnam, Malaysia and Brunei has dispute with China over the South China Sea has approached United Nations for resolution.
    
China, however, has rejected third party intervention to resolve the dispute.
    
The US while criticising Chinese actions,has said it has not taken any position on the disputes which have to be resolved by concerned parties and opposed any attempts by Beijing to seek a military solution.
    
The SED was established in 2009 by former Chinese President Hu Jintao and Obama to interact on intricate issues.
    
The ever evolving China-US relations and the changing international situation have added to the urgency of furthering the cooperation and communication between the two countries, a commentary by the state-run Chinese Xinhua news said.
    
On the economic side, Beijing is riled by Lew's remark that China Renminbi (RMB) is undervalued to benefit its exports, it said.

(Agencies)

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