Chinese Ambassador to the United States Xie Feng on Wednesday urged the U.S. to meet China halfway to stabilize and improve bilateral ties.

Xie made the remarks during an interview with Semafor's Steve Clemons at the Aspen Security Forum.

He said recent discussions between the two countries are "in depth, candid and constructive," but warned that problems persist. "China-U.S. relations are facing serious difficulties and challenges."

On bilateral ties

The Chinese ambassador called on the two sides to manage differences and advance dialogue and cooperation.

The U.S. should shorten the negative list, remove obstacles and control differences through actions and properly handle important and sensitive issues such as Taiwan, Xie said.

He urged the U.S. to stop sanctioning Chinese entities and individuals, and prevent new disruptions and impacts on bilateral relations caused by "black swans" and "gray rhinoceros" incidents.

Calling for extending the positive list, Xie said the two sides should strengthen dialogue and expand cooperation with sincerity to add positive energy to the development of bilateral relations by starting with small steps.

He listed things including increasing passenger flights, facilitating the exchange of visits by students, scholars, tourists, entrepreneurs and resuming various dialogue and exchange mechanisms.

Xie said he was surprised at just how much "political correctness" has encompassed American society, raising concerns that any commentary in favor of improving bilateral ties is now a taboo in American discourse.

"There are some hiding in the darkness, afraid of being crushed," he said, referring to those who support ending the spat between the two countries. "One of my jobs here is to seek them out."

On China's development

In terms of China's development intention, Xie pointed out the Chinese nation is the most harmonious and friendly nation in the world. "It is not our tradition to be belligerent and aggressive and it is not in our DNA to invade others or seek hegemony."

The purpose of China facilitating for the re-establishment of diplomatic relations between Iran and Saudi Arabia is simply to encourage more countries in the region to shake hands and to make greater contributions to world peace, stability and prosperity, he said.

Xie told the crowds that "China respects the interests of the U.S. and will not seek to challenge and replace the U.S. Similarly, the U.S. must also respect China and not harm China's legitimate rights and interests."

He called on the international community to discard the Cold-War mentality, group confrontation and zero-sum game mindset and to pursue win-win cooperation.

On Taiwan question

Reiterating that Taiwan is an inalienable part of China's territory, Xie told the forum that no one cherishes peace and stability in the Taiwan Straits and hopes for peaceful reunification more than the Chinese side.

He pointed out Taiwan authorities' clinging to the U.S. to seek "independence" and some U.S. forces' advocating of using Taiwan to contain China are endangering peace and stability in the Taiwan Straits.

The U.S. side should act on its commitments including on not supporting "Taiwan independence," Xie said and called on the U.S. to follow one-China policy, and abide by the provisions in the three China-U.S. joint communiques.

"Now the priority for us is to stop Lai Ching-te from visiting the United States, which is like a 'grey rhino' charging at us," Xie said.

On U.S. suppressing China

Regarding the U.S. suppression of Chinese high-tech firms, the Chinese ambassador stressed China is opposed to any kind of trade war or technological war under the pretext of competition.

"China is neither fearful nor shy away from competition, but the U.S.' so-called competition is obviously unfair," said Xie.

He highlighted the existing U.S. prohibitions on Chinese imports of equipment to make advanced chips. "This is like ... restricting the other side to wear outdated swimwear in a swimming contest, while you yourself are wearing a Speedo."

China never starts provocation, but we will not flinch from any provocation coming our way, Xie noted, adding that the Chinese government cannot simply sit idly by.