President Xi Jinping said there was reason for optimism in the development of China-US relations as he met America's top diplomat in Beijing on Friday.

According to state media, the president told Antony Blinken that progress had been made over the past few months in stabilising ties between the two countries.

Xi said the two nations should be "partners, not rivals", and should seek common ground while reserving differences and avoid descending into vicious competition, adding: "there are still a number of issues that need to be resolved, and there is still room for further efforts."

The president also said that "China would be pleased to see a confident and open, prosperous and developing United States".

"We hope the US can also take a positive view of China's development," he added.

"When this fundamental problem is solved... relations can truly stabilise, get better, and move forward." (Reuters/AFP)