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Yang, a former foreign minister, also said in his speech at an online event held by a private U.S. organization that Beijing can work in tandem with Washington to tackle global climate change and the novel coronavirus pandemic.
His remarks came as China has pledged to take a tough stance against the new U.S. administration, inaugurated on Jan. 20.
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Meanwhile, it is believed that Beijing will try to restore bilateral ties, which sharply deteriorated under former President Donald Trump, to help bring about greater economic and political stability as the country marks the 100th anniversary of the ruling Communist Party this year.
China and the United States should "respect each other," said Yang, a member of the Political Bureau of the Communist Party's Central Committee.
Yang, however, said Washington "must not attempt to hinder China's development" by meddling in the country's domestic affairs such as human rights issues surrounding Hong Kong, Tibet and the Xinjiang autonomous region.
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"They constitute a red line that must not be crossed. Any interference would end up harming Sino-U.S. relations and the U.S.'s own interests," Yang said.
As for the former Trump administration, it "carried out extremely misguided policies against China," Yang said, adding it "significantly hurt Sino-U.S. ties" by promoting "decoupling" and a "new Cold War."