President Xi Jinping told US President Barack Obama on Thursday that China and the US should handle unresolved disputes in a constructive manner to avoid misunderstandings and escalating conflict.

"I would like to reiterate to work together with the US side to establish a new-type of relationship of big powers, achieve the goal of no conflicts or confrontations, respect for each other, cooperate for win-win results, which is the priority of China's foreign policy," he said.

Xi made his remarks in a meeting with Obama on Thursday afternoon on the sidelines of the fourth Nuclear Security Summit (NSS).

Xi acknowledged that there are disputes and different views between China and the US in some areas, and both sides should respect each other's major concerns and seek solutions through dialogue.

"I expect to enhance communications with President Obama to focus on cooperation, manage disputes, boost mutual trust and push forward the China-US relationship to continue to develop in a healthy and stable direction," he said.

Obama said that he appreciated Xi's candid and constructive conversations with him on the disputes.

Obama also expressed his wishes of a successful G20 summit to be held in September in Hangzhou, East China's Zhejiang province.

The two last met in Washington in September during Xi's state visit to the US. They then met on Nov 30 in Paris at the climate conference. The two presidents also have had three phone calls since then. And they are expected to meet on the sidelines of the G20 summit in China in September.

China replaced Canada last year as US' top trade partner. The world's two largest economies have greatly expanded their cooperation in the last few years, including in military-to-military exchanges, non-proliferation leading to the P5+1 Iran nuclear deal and in Afghanistan in the training of young diplomats.

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