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President Xi Jinping said that China wants to see more understanding and trust between the US and China, "less estrangement and suspicion in order to forestall misunderstanding and miscalculation."

"We should strictly base our judgment on fact, lest we become victims to hearsay, paranoia, or self-imposed bias. There is no such thing as the so-called 'Thucydides' trap' in the world, but should major countries time and again make the mistakes of strategic miscalculation, they might create such traps for themselves," he said in Seattle on Tuesday. Xi was speaking at a dinner gala held in his and the First Lady's honor, co-hosted by the National Committee on US-China Relations and the US-China Business Council.

The president said the two countries must read each other's strategic intentions accurately in order to advance a new model of major-country relations.

"Building a new model of country relationship with the United States that features non-confrontation, non-conflict, mutual respect and win-win cooperation is the priority of China's foreign policy. We want to deepen mutual understanding with the US on each other's strategic orientation and development path," he said.

Cooperation between the two biggest economies requires mutual accommodation of each other's interest and concerns, he said, and if done well, China and the US can become a "bedrock of global stability and a booster of world peace."

Speaking in front of a crowd of about 700 business leaders, government officials, and dignitaries, Xi sought to reassure those concerned about China's recent stock market troubles, saying that the government took the necessary steps to stabilize the market.

"Recent abnormal ups and downs in China's stock market have caused wide concern. Stock prices fluctuate in accordance to inherent laws. It is the duty of the government to ensure an open, fair, and just market order and prevent massive panic from happening. This time, the Chinese government took steps to stabilize the market and contain panic in the stock market and thus avoided a systemic risk. Mature markets in various countries have tried similar approaches," he said.

The central bank took measures in August to adjust its currency exchange rate according to market supply and demand, which the president said has achieved "initial success" in correcting the currency rate deviation.

"Given the economic and financial situation at home and abroad, there is no basis for continuous depreciation of the RMB," he said.

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