China's foreign ministry made the comments before US Secretary of State Hillary Clinton arrived in Myanmar, becoming the most senior US official to visit the country in more than half a century.

"We believe that Myanmar and relevant Western countries should enhance contact and improve relations on the basis of mutual respect," Chinese foreign ministry spokesman Hong Lei told a regular press briefing.

"We hope relevant parties within Myanmar can resolve their differences through peaceful negotiations so as to promote the stability and development of Myanmar."

China has been the primary supporter of the junta and the military-dominated civilian government that succeeded it after controversial elections last year, although many ordinary citizens are resentful of Beijing's large economic presence.

Myanmar has surprised observers with a series of reformist moves in the past year -- including shutting down work on a controversial dam project backed by Beijing -- leading to speculation it is trying to diversify its foreign policy.

On Wednesday the state-run Global Times newspaper, known for its nationalist stance, said the decision to halt work on the Myitsone dam had brought "massive losses" to the state-run Chinese company that backed the project.

"China has no resistance toward Myanmar seeking improved relationships with the West, but it will not accept this while seeing its interests stamped on," the paper said in an editorial.

"This incident made some believe that Myanmar is showing goodwill to the West at the expense of Chinese interest," the daily added.

"China does not have the ability to export its values yet, but it doesn't mean the American value prevails in the region."

US President Barack Obama's administration, while saying it wants a cooperative relationship with a rising China, has recently gone on the offensive amid suspicions over Beijing's intentions.

Obama recently announced the stationing of US troops in Australia -- a clear sign of US priorities at a time of tight budgets -- and has pushed ahead a trans-Pacific free trade agreement that for now excludes China.

"I hope Secretary Clinton's visit will open the way toward a better relationship" with Myanmar, which is also known as Burma, Suu Kyi told foreign policy experts in Washington via video conference from Myanmar.

She voiced hope that Clinton will be able to discuss key issues with the government "and that they will be able to come to some kind of understanding that will encourage the reforms to go further."

On Thursday, Clinton meets President Thein Sein, a former general now at the vanguard of reforms, before traveling to the main city Yangon for talks with Suu Kyi, whose views hold great sway in Washington.

Clinton is expected to urge Myanmar to free all political prisoners, estimated by activists to number between 500 and more than 1,600.

She is also likely to press the so-called civilian government to end long-running ethnic conflicts that have displaced thousands of people.

Myanmar, also known as Burma, has surprised observers with a series of reformist moves in the past year including releasing Suu Kyi from house arrest and nominally ending decades of military rule.

Suu Kyi saw a genuine desire among Myanmar's leadership to improve ties with the United States even if she believed that there are disagreements within the government over the desirability of reform.

"I think that both countries want to improve relations and I'm very much in favor of that. I've always been in favor of engagement. I would certainly be very happy to see the United States engaging more with Burma," she said.

Months after entering office, US President Barack Obama's administration launched a policy of engaging diplomatically with Myanmar after determining that the old policy of sanctions was ineffective in pressing the regime to change.

The Obama administration has held out the promise of lifting sanctions if Myanmar undertakes further political and economic reforms.

During a visit to Asia earlier this month, Obama agreed to send Clinton on the groundbreaking trip to Myanmar following a phone call to Suu Kyi.

Suu Kyi said the Myanmar "government is quite comfortable with the close links" she has with the United States because she said it understands she does not intend to the use the relations with Washington to harm the government.

Suu Kyi added that she was always looking for the international community -- particularly the United Nations and India, the world's most populous democracy -- to play a stronger role for change in Myanmar.

"Certainly we would like India to do more to promote democratic values in Burma," she said.

As for the relationship with powerful neighbor China, which has considerable influence in Myanmar, she said, "I hope it will always be a friendly one and that the Chinese government will understand the concerns of our people."