Analysts said Yang's comments underscored Beijing's hopes for steadier ties with Washington after some rough patches last year.

Yet, as some long-standing hurdles still exist, both sides should manage their differences rationally to prevent an escalation that harms ties, they said.

Yang admitted "it is an objective reality that China and the US have some differences or even friction over some issues".

"What's important is to properly handle these differences on the basis of mutual respect," said Yang.

Sun Zhe, director of the Center for US-China Relations at Tsinghua University, said overall relations are moving forward, but a critical moment looms as the US prepares a new round of arms sales to Taiwan.

The single issue of arms sales to Taiwan will have a detrimental effect, said Sun. "It is crucial how the two sides respond."

The rocky year of 2010 made both sides aware of the other's bottom line, said Yuan Peng, an expert on US studies with the China Institutes of Contemporary International Relations.

"With a 'cooperative partnership' in mind, the two sides will take a more rational attitude toward sensitive issues," said Yuan.

"China has no intention to challenge the US and its presence in Asia," he noted.

Yang also answered a number of questions concerning China's relations with Russia, Japan, South Africa and the European Union.

On a question raised by Reuters that some foreign reporters have been harassed or even beaten up when they conducted interviews recently in Beijing, Yang denied any police involvement.

"There is no such issue as Chinese police officers beating foreign journalists," he said.

Yang said China is a country ruled by law and "we will continue to provide convenience for foreign reporters for their legal and reasonable reporting".

"We also hope they respect China's laws and regulations," he said.