Xi, opening the two-day annual talks in Beijing, said problems in bilateral ties are not to be afraid of as long as both sides work to solve them.
Considering their different histories and cultures "it is natural that China and the US may have different views and even frictions on certain issues", Xi said.
"This is what makes communication and cooperation even more necessary," he said at the joint opening ceremony of the sixth China-US Strategic and Economic Dialogue and the fifth China-US High-Level Consultation on People-to-People Exchange.
"If we are in confrontation it will surely spell disaster for both countries and for the world," he said.
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Xi called on the need for Pacific powers to "break the old pattern of inevitable confrontation".
"One can ill afford a mistake on fundamental issues, a mistake that may possibly ruin the whole undertaking," he said.
In Washington, US President Barack Obama also issued a statement coinciding with the beginning of the talks here, saying the US is committed to the goal of developing a "new model" of relations with China defined by increased practical cooperation and "constructive management" of differences.
Xi said China and the US have overcome difficulties and continued to progress in the past 35 years, thanks to the leaderships understanding of contemporary conditions.
"Today, our two countries should better observe the times and think creatively to open new prospects in bilateral cooperation," Xi said.
The US delegation led by Secretary of State John Kerry and Treasury Secretary Jacob Lew will hold two-day talks with Chinese Vice Premier Wang Yang and State Councilor Yang Jiechi to strike what Chinese officials describe a "new type" of relationship to further bilateral ties.