President urges both countries to have a correct understanding of each other's strategic aims

Chinese President Xi Jinping (R) meets with former US Secretary of State Henry Kissinger, who is leading a US delegation for the fifth meeting of the China-US Track Two High-Level Dialogue in Beijing, China, Nov 2, 2015. [Photo/Xinhua]

President Xi Jinping urged China and the US on Monday to "have a correct understanding of each other's strategic intentions".

He also called for them to "handle disputes properly" amid tensions triggered after a US Navy ship illegally entered waters near Chinese islands in the South China Sea.

"We have new opportunities to develop the Sino-US relationship, but we also face challenges," Xi said.

"The two countries should have a correct understanding of each other's strategic intentions and strengthen pragmatic cooperation at all levels to expand common interests by thinking in an innovative way."

The president made the comments when he met with former US secretary of state Henry Kissinger in Beijing.

On Oct 27, a US destroyer passed within 22.2 kilometers of Chinese man-made islands in the South China Sea. Beijing condemned the US action as "a serious military and political provocation against China".

Briefing Kissinger on the 13th Five-Year Plan (2016-20), Xi said China will adopt innovation, coordination, green policies and an open and sharing approach to the plan, which will provide more opportunities for Sino-US cooperation.

The plan is the central government's blueprint for China's long-term social and economic policies.