U.S. Secretary of State John Kerry told Chinese President Xi Jinping on Thursday that the strained U.S.-China relations could still be strengthened, and both countries could figure out ways to settle their differences.

The annual U.S.-China Strategic and Economic Dialogue (S&ED) ended with both countries agreeing to address climate change, North Korea, Afghanistan and Iran. In addition, Kerry bluntly told Xi that the U.S. did not intend to contain China's rise as what the latter said previously, The New York Times relayed.

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At the conclusion of the two-day talks, Kerry emphasized that the U.S. does not want to stir conflict with China. This statement was meant to address charges that President Obama had renewed its Asian alliances to contain China and its rising military power.

Beijing also dismissed the accusations that Chinese hackers stole important American data despite the American delegation's attempt to bring up cyberespionage as one of the pressing issues at the talks. Instead, the Chinese Foreign Ministry said the spying report was just part of a smear campaign against China.

When the U.S. Justice Department indicted five Chinese military officers on cyberespionage charges, China responded by suspending a joint effort with the U.S. to form a cyber working committee. Citing National Security Agency (NSA) documents leaked by Edward Snowden, China said the U.S. used spying to gain traction in the economy.

On Thursday afternoon, Xi called on U.S. and Chinese delegates to build a new "major country relationship." The phrase implies an equal status between the two nations.

Meanwhile, the Obama administration is still reluctant to endorse Xi's proposed equal status for fear of legitimizing China's controversial territorial claims in the East and South China Seas.

The American delegation seemed happy about the turnout of the discussion on reducing carbon emissions. A joint committee on climate change vowed to develop new standards for fuel economy and greenhouse gas emissions.

Xie Zhenhua, the chief climate official of China, said China is still a developing country and, therefore, should not yet abide with the same greenhouse gas emission rules as that in the U.S. He also suggested that Beijing will fight attempts to impose the new rules during the world climate gathering in Paris next year.

TagsJohn Kerry, US-China relations, Asian alliance, US-China talks