"We're exploring a new range of diplomatic, security and economic measures", Tillerson said in Seoul while speaking alongside South Korean Foreign Minister Yun Byung-se.
Haley said the United States has taken a "soft" stance toward China, but the new administration plans to "go harder" and make China prove they're serious about deterring North Korea.
Tillerson, for his part, said that Trump values communications with Xi and is ready to develop ties based on steering clear of conflict and confrontation and pursing win-win strategies.
Aside from the regional chaos it would unleash and the unpredictable response it would provoke from Un, an attack could unleash waves of refugees across China's northern border, and the ultimate fall of the North Korean regime could result in a unified Korea, putting a major USA ally across that same border, Keylor said.
"With this in mind the United States calls on North Korea to abandon its nuclear and ballistic missile programs and refrain from any further provocations", he said.
He has also criticised Chinas military buildup in the South China Sea and accused it of doing too little to pressure North Korea over its nuclear and missile programmes.
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Tillerson's comments came during his first official visit to Asia as President Donald Trump's secretary of state.
"The joint interests of China and the United States far outweigh the differences, and cooperation is the only correct choice for us both", Mr Xi continued.
On Friday, concerns about North Korea prompted a missile evacuation drill on Japan's coast, where more than 100 residents of a town heard sirens and were told to take cover in an exercise that's seen as unprecedented. Last month, another two South Koreans who help North Korean defectors were arrested in China. "That includes a period where the United States has provided $1.35 billion (153 billion yen) in assistance to North Korea as an encouragement to take a different pathway".
China and the USA would work together to resolve the nuclear tensions on the Korean peninsula, he said. The ties worsened even further after a phone call between Trump and the Taiwanese president in December, raising concerns that the new U.S. administration may not honor the one-China policy.
Under the Obama policy, the U.S. ruled out engaging the North until it made a tangible commitment to denuclearisation, hoping that internal stresses in the isolated country would bring about change.
There he met some of the more than 28,000 USA troops stationed on the peninsula, and toured the Joint Security Area, where North and South Korea soldiers stand facing each other. "It is looking for more balanced trade ties and greater Chinese contribution to peace and stability, especially in dealing with North Korea", Glaser said.