"And it's an opportunity for our two countries ... to be able to work through common problems and to seize common opportunities," he added.
Moreover, Bush said he has always been committed to broadening defense cooperation and exchanges between China and the United States.
The president believed it was very important for U.S. generals, especially younger U.S. officers, to conduct exchanges and make more contacts with their Chinese counterparts so as to create a feeling of trust.
Asked about how he viewed the changes happening with India and China growing stronger, Bush said he believed the emergence of India and China is a positive thing.
"I view the emergence of India and China as positives and I think it's going to be very important for the United States to stay engaged," he said.
"They will provide great opportunities for development of services and goods that people in our big markets want," he said.
"It provides great opportunities for capital flows which is necessary for economic development. It will provide opportunities to work collaboratively on strong strategic areas, security areas ... as well as on the environment," the president added.
While talking about Taiwan, Bush said it is "a very sensitive issue" for the Chinese government.
People who study this very closely will see that the issue is "in a better place," Bush said.
"I made it abundantly clear that there were some red lines for the United States on this issue, that there would be no unilateral declaration of independence," the president said.
"Our policy was still the same. It's very important for the president to be very consistent," he added.
Bush said he himself was very pleased with the state of (cross-Straits) relations now.
