China's defense minister, in his first public address since taking office, said that a war against America would be an "unbearable disaster."
General Li Shangfu said at a security summit that "some countries" are accelerating the arms race in Asia.
He stated that the world is big enough for both China and the United States and that the two superpowers should try to find common ground.
Earlier, America accused China that its destroyer carried out "unsafe" maneuvers near a US Navy ship in the Taiwan Strait.
On Saturday, the US Navy said a Chinese destroyer sailed "in an unsafe manner" near a US warship as it transited the Taiwan Strait with Canadian vessels.
China has criticized both countries for “intentionally causing risk.” The US and Canada have said they are sailing where international law allows.
General Lee, who became defense minister in March, accused the US of a "Cold War mentality" and said it "significantly increases security risks".
In the speech, he said that China will not allow the US and its allies' naval patrols to be "an excuse to create hegemony in navigation".
Asked about the incident in the Taiwan Strait, he said countries outside the region were raising tensions.
He was speaking at the Shangri-La Summit in Singapore, an annual security meeting in the Asia-Pacific region.
Beijing has rejected a US request for direct military talks in protest of US sanctions imposed on General Li in 2018 over his arms purchases from Russia.
At a summit in Singapore, US Defense Secretary Lloyd Austin criticized China for refusing to hold military talks.
- China simulates hitting 'key targets' in Taiwan
- What kind of support does China provide to Russia?
- China and Taiwan: A simple explanation of the background to the conflict
General Austin and General Lee shook hands and spoke briefly at the opening event on Friday, but there was no substantive dialogue.
The Chinese defense minister's "moderate" tone signals that talks with Austin are possible, but Washington must lift sanctions against him, said Zhou Bo, a retired People's Liberation Army officer.
General Lee was sanctioned in 2018 for purchasing military equipment from Russia.
His five-year term as defense minister began earlier this year, but sanctions prevent him from traveling to the US and also make it difficult for him to invite General Austin to China, Zhou added.
"If there are sanctions, how can we talk? Sanctions are very important," said Zhou, now a senior fellow at the Center for International Security and Strategy at Tsinghua University in Beijing.
Senior intelligence officials attended a meeting of spy chiefs at a summit in Singapore, Reuters news agency reported.
Despite the diplomatic spat, a senior US State Department official arrived in Beijing for a week of wide-ranging talks.
Relations between Washington and Beijing have been strained in recent years over several issues, including China's claims to Taiwan and territorial disputes in the South China Sea.
A senior Chinese military official, Lt. Gen. Ying Jianfeng, said there was no room for compromise on Taiwan, as he accused the US of meddling in regional affairs.
Washington's decision to increase the number of rotating troops in the region could increase the risk of conflict, Jianfeng told reporters on the sidelines of the summit.
Additional reporting by Samantha Chen in Singapore.
Watch the video
Follow us on Facebook,Twitter i Viber. If you have a topic proposal for us, contact us at bbcnasrpskom@bbc.co.uk
Bonus video:
