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President Xi Jinping delivers a policy speech to Chinese and United States' CEOs during a dinner reception in Seattle, Washington, September 22, 2015. [Photo/Agencies]

Xi also reiterated China's opposition to cyber theft, amid high tensions between the two countries because the US has blamed several cyber attacks on China recently.

"China is a strong defender of cybersecurity. It is also a victim of hacking," Xi said. "The Chinese government will not, in whatever form, engage in commercial thefts or encourage or support such attempts by anyone. Both commercial cyber theft and hacking against government networks are crimes that must be punished in accordance with the law and relevant international treaties.

Xi said that the international community should work together to build a peaceful, secure, open and cooperative cyberspace.

Xi shared the story of his arduous and starving youth in a remote village to illustrate what a Chinese dream means for ordinary Chinese people.

Xi arrived at Seattle early Tuesday morning with his wife Peng Liyuan, and was warmly welcomed by Washington state business leaders and officials.

Mark Fields, chair of the US-China Business Council and also CEO of the Ford Motor Co, also addressed the banquet. He said "success in leading the global challenges of today and in the years ahead depend greatly on how our two countries come together, in support of common goals and also in soothing our differences".

US Secretary of Commerce Penny Pritzker said that while this week many significant deals will be announced during Xi's visit, it exemplifies US companies' commitment to support China's development both with capital and world-class technology.

Kissinger, who played a major role with opening relations between China and the United States in the 1970's, said Xi's state visit is an important step in lifting the two countries' relationship from the day to day solving of problems to the creating of a new world order.

Xi will take part in a round-table discussion with Chinese and American executives, visit Boeing and Microsoft offices and a local high school before flying to Washington on Thursday morning.