Chinese President Xi Jinping has called for "an open world economy" in an address to the World Economic Forum, saying that excellence rather than "wrestling" should be driving global prosperity.

In a virtual gathering instead of the annual in-person meetings at the Switzerland ski resort of Davos, Mr Xi urged nations to remove all barriers to trade.

"We should build an open world economy … discard discriminatory and exclusionary standards, rules and systems, and take down barriers to trade, investment and technological exchanges," Mr Xi said in a 25-minute speech.

"We should advocate fair competition, like competing with each other for excellence in a racing field, not beating each other on a wrestling arena.

"To engage in cliques, a new Cold War, exclusion, threats and intimidation against others, to warn of decoupling, cutting off supplies, sanctions at every turn … can only drive the world to division and even conflict.

China's relations with the US have sunk to their lowest point in decades after former President Donald Trump imposed punitive tariffs and other sanctions on Chinese products.

Just days after his inauguration, incoming President Joe Biden has yet to set out his administration's own trade policies with China.

In his first address to the conference since 2017, Mr Xi said G20 nations should put aside their differences, pointing to a "rather shaky" recovery from the coronavirus pandemic.

"In particular, we should strengthen cooperation in vaccine research and development, production and distribution, so that vaccines can truly become a public good that are accessible and affordable to people in all countries."

During his presidency, Mr Trump repeatedly blamed Beijing for the pandemic, which he often called "the China virus".

Taiwan tensions remain

Mr Xi's comments came after the Chinese Foreign Ministry said the growing military presence of the US in the South China Sea was "not conducive to peace and stability of the region".

On Saturday, the US sent an aircraft carrier group to the South China Sea in an operation that Washington said promoted "freedom of the seas" in the disputed area.

Chinese Ministry of Foreign Affairs spokesperson Zhao Lijian dismissed a statement released by the US State Department that urged China to "engage in meaningful dialogue" with Taiwan and stop "military, diplomatic, and economic pressure" against the island.

The US acted after Taiwan reported the deployment of Chinese bombers and fighter jets into its air defence identification zone.

Mr Zhao, who refused to comment on the weekend's incidents, urged the US to uphold the one-China principle and "refrain from sending wrong signals to the Taiwan independence forces".

"We are willing to engage in dialogue and consultation with all parties, groups and individuals in Taiwan on the political basis of adhering to the 1992 Consensus and opposing Taiwan independence," he said.

Taiwan and China separated after a civil war in 1949.

China says it is willing to bring the island under its control by force if necessary.

The US switched diplomatic recognition from Taipei to Beijing in 1979, but is legally required to ensure Taiwan can defend itself, with strong bipartisan support for the self-governing democratic island.

ABC/wires