USA and Chinese officials also discussed the defense cooperation between the two countries and China's assistance to Iraq to help counter the Islamic State militant organization, the report added.
US Secretary of State Rex Tillerson said on Thursday that #The United States, during the meeting with Chinese diplomats and defense officials, called on Beijing to create greater economic and political pressure on North Korea.
The two men made their remarks as the US hosted China's top diplomats and defense officials for the Diplomatic and Security Dialogue.
Otto Warmbier, center, is escorted at the Supreme Court in Pyongyang, North Korea, Wednesday, March 16, 2016.
If Washington imposed sanctions on Chinese enterprises dealing with North Korea, it would lead to "grave friction" between the two countries, wrote the paper, which does not represent Chinese government policy.
Tillerson urged China to help crack down on illicit North Korean activities that fund its nuclear and missile programs, and said the Chinese had agreed their companies "should not do business" with sanctioned North Korean entities.
But despite an apparent surplus of targets suggested by the UN Panel of Experts (PoE) annual reports, Chinese companies and individuals have generally avoided the line of fire. He was held for almost a year-and-a-half in North Korea before being sent home in a coma last week. "Until Washington acts against Chinese companies and banks, Beijing will not put the level of pressure necessary to have an impact", Anthony Ruggiero, Senior Fellow at the Foundation for Defense of Democracies, told NK News.
On Tuesday, a USA official said US spy satellites had detected movements recently at North Korea's nuclear test site near a tunnel entrance, but it was unclear if Pyongyang was preparing for a new nuclear test, perhaps to coincide with Wednesday's high-level talks.
Tillerson's statement follows an apparently critical tweet from President Trump on Tuesday, in which he appeared to express dissatisfaction with China, saying that although he appreciated their efforts, they so far "have not worked out".
The death of American student Otto Warmbier, who passed away last week after being released from 17 months of detention in Pyongyang for stealing a propaganda poster, further complicated the American president's attitude towards that communist state.
Defense Secretary Jim Mattis says the American people are growing increasingly frustrated over the government in North Korea that "provokes, provokes and provokes".
The talks are meant to build on progress made when President Donald Trump met China's president in Florida in April. But Pyongyang has also hit back at Beijing for bowing to Washington. Those talks rarely produced significant results. "I wish we would have a little more help with respect to North Korea, from China".