"The US should deeply understand the nature of the mutual benefits of relations between the two countries, correctly understand China's domestic and foreign policies, as well as strategic plans. China opposes the use of the term 'competition' to define China-US relations," Yang, who heads the Office of the Central Commission for Foreign Affairs, was quoted as saying by the ministry.
The top official reiterated Beijing's stance on such sensitive issues, as Taiwan, Hong Kong and Tibet, urging Washington to "respect the sovereignty, security and development interests of China" and stop interfering in its internal affairs.
Cooperation between the two countries will benefit both, as well as the entire international community, while confrontation between them will cause serious damage, the official noted.
The two held six-hour talks in the Swiss city of Zurich on Wednesday. Sullivan told Yang that that the United States will continue to engage with China at a senior level to "ensure responsible competition."