Chinese Ambassador to the United States Xie Feng on Wednesday said that although the China-U.S. relationship has recently seen some positive signs of stabilizing, it still face serious difficulties and grave challenges.

"There is still a long way to go to stabilize and improve the relations," said Xie at a reception to celebrate the 74th anniversary of the founding of the People's Republic of China in Washington D.C.

The ambassador pointed out that while a lot has changed in China-U.S. relations in recent years, the fact that the two countries are interdependent has not. The two peoples' enthusiasm about greater exchanges and cooperation have not changed, he said, and nor has the international community's expectation for a generally stable China-U.S. relationship.

"The key is to abide by the three principles outlined by President Xi Jinping, namely, mutual respect, peaceful coexistence and win-win cooperation, and find the right way for China and the United States to get along in the new era," he stressed.

Mutual respect is the prerequisite for interactions between the two countries, Xie added.

The ambassador called on the U.S. to respect China's sovereignty and territorial integrity, properly handle important, sensitive issues such as the Taiwan question in line with the principles of the three Sino-U.S. joint communiques, and respect the Chinese people's choice of development path and political system and right to pursue a better life.

"Peaceful coexistence is the red line the two countries must keep to. Any war, cold or hot, trade or technological, should be avoided," Xie noted.

He also urged the U.S. to stop sanctions against Chinese entities and individuals, adding that win-win cooperation is the goal the two countries should aim for.

The two sides should both take positive actions from now, starting with concrete, small steps that will benefit their peoples and help bring the China-U.S. relationship back to the right track, Xie said.

"It is hoped that the United States will work with China in the same direction, clear obstacles and manage differences with concrete actions, and enhance dialogue and expand cooperation in good faith, so as to stabilize and improve China-U.S. relations," said the ambassador.