Xi told members of the Communist Party's politburo that China would stick to its policy of peaceful development but would never sacrifice its legitimate rights or basic interests.
"No foreign country should expect us to make a deal on our core interests and hope we will swallow the bitter pill that will damage our sovereignty, security and development interests," Xi told the 25-member body on Monday.
Xi said China will adhere to an "open, cooperative and win-win" development model with due consideration for both domestic and international situations.
China will pursue its development by seeking a peaceful international environment while safeguarding and promoting world peace, he said.
Xi said the government will ensure the public benefits from China's peaceful development, as well as work to consolidate a material and social basis for furthering its development.
Wartime atrocities in the past had made an indelible impression on the Chinese people, leading them to desire and cherish a peaceful and stable life, Xi said.
"Turbulence is what the Chinese people are afraid of, stability is what they are after and world peace is what they are looking forward to," Xi said.
Xi said that "without peace, China and the world at large cannot develop smoothly; without development, both China and the world as a whole cannot have enduring peace."
He added: "Global progress is like a tidal wave: ride with it and prosper, sail against it and you surely will perish."
Global prosperity and stability represent an opportunity for China, while China's development represents an opportunity for the world, he said, adding that the success of a peaceful path of development will depend on the utilization of the opportunities that exist for both sides.
Through sound interaction between both sides, China will open up a path for advancement, he said, adding that the country will unswervingly adhere to its own path.
Xi said China is following a road of peaceful development and other countries should do the same.
He also said that only when all countries pursue a path of peaceful development can they jointly develop and enjoy peaceful coexistence.
"We should widely and deeply spread our country's strategic thinking of sticking to the road of peaceful development and guide the international community to properly understand and approach China's development," Xi said.
"China will never pursue development at the cost of sacrificing other country's interests. We will never benefit ourselves at others' expense or do harm to any neighbor," he said.
China will unswervingly pursue peaceful development, push forward joint development, maintain the multilateral trade system and participate in global economic governance, Xi said.