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China called for all related parties to demonstrate flexibility in handling the issue.

China has increasingly opened its economy and reduced restrictions to facilitate foreign investment, cutting negative list items in the China (Shanghai) Pilot Free Trade Zone, for example, from more than 190 in the original version to only 37, he said.

China has imposed a fishing ban in the South China Sea since 1999, aiming to protect natural resources and ensure the fishing industry's sustainability, a fishery administration official at the Ministry of Agriculture said.

China attaches great importance to the development of bilateral ties, Xi added.

China expressed grave concerns about the Office of the United States Trade Representative accusing China, in a trade policy document earlier this week, of adopting "hostile policies" in trade activities, according to the Ministry of Commerce and analysts in Beijing.