Chinese President Xi Jinping said Wednesday that China and the United States should properly handle frictions and contradictions in their bilateral relations, so as to forge a new model of major-country relationship.

In a keynote speech at the China-US Strategic and Economic Dialogue, slated for Wednesday and Thursday, Xi said the two countries should promote mutual trust.

"China is striving for its dream of realizing great national rejuvenation, which requires a peaceful and stable international environment more than ever. Thus, China will stick to its peaceful development," he said, adding that the two sides should enhance dialogue and cooperation to strengthen trust.

Secondly, China and the United States should respect each other and accumulate shared interests to defuse differences, suggested the Chinese leader.

"Both sides should keep the big picture in sight and grasp the general goal of boosting the new model of major-country relationship," Xi said, referring to the consensus he established with US counterpart Barack Obama when he visited the country in June last year.

"The two countries should keep in mind that their common interests far overweight differences," he noted, saying that respect is needed in terms of each others' sovereignty, territorial integrity, and chosen model of development.

He called on both sides to avoid being distracted by accidental issues, and said they should stick to dialogue, consultation and other constructive ways to expand understanding and consensus.

Furthermore, Xi said the two countries should deepen cooperation based on equality and mutual trust, and tap more cooperative potential.

They should "accelerate negotiations on the Bilateral Investment Treaty, strengthen military dialogue, combat all forms of terrorism, work together in dealing with climate change and promote communication and coordination on major international and regional issues," Xi urged.

The Chinese president also underlined Sino-US people-to-people exchanges in the speech, saying both sides should encourage friendly exchanges between their peoples, and broaden social communication channels to consolidate public opinion in favor of bilateral friendship.

"The foundation of Sino-US friendship lies in the people, and our hope in youth," Xi added.