China and the United States should strengthen economic and trade ties and Washington should avoid decoupling from China, Chinese Premier Li Qiang said on Wednesday, during a meeting with a visiting U.S. delegation, Chinese state radio reported.

"Strengthening economic and trade cooperation is a win-win situation for both countries," Li told the delegation led by Chamber of Commerce chief Suzanne Clark.

"Seeking decoupling and building 'small yards with high walls' do not align with the fundamental interests of both sides," he added.

Li said U.S. companies were welcome to continue investing in China and that barriers were not in the fundamental interests of both sides.

Clark is leading a delegation of former U.S. government officials to Beijing this week, the group has said.

The visit comes as the United States and China gradually resume engagements after the two economic superpowers' most tense relations in years, at loggerheads over the future of democratically ruled Taiwan, territorial claims in the South China Sea and trade policies.

Ties are still recovering after the United States downed an alleged Chinese spy balloon a year ago. (Reporting by Albee Zhang and Kevin Yao; Editing by Andrew Heavens and Alex Richardson)