Former U.S. secretary of defence Leon Panetta says he believes there is still opportunity to mend the West's relationship with China, as relations with the superpower become increasingly adversarial.

Panetta 鈥 who is also a former CIA director and served under the Obama Administartion 鈥 told CTV鈥檚 Question Period host Vassy Kapelos, in an exclusive Canadian interview airing Sunday, he鈥檇 鈥渓ike to hope鈥 there are areas in which the West and China can find agreement, while still being able to draw hard lines when it comes to condemning China鈥檚 actions in other areas.

China has been the public focus of several American officials in recent weeks. The U.S. military downed a Chinese spy balloon off the coast of South Carolina last month and Secretary of State Antony Blinken has publicly warned China will face consequences if it sends lethal aid to Russia.

Meanwhile, FBI Director Christopher Wray pointed to a lab leak in China being the likely origin of COVID-19, and officials have made moves to ban the Chinese-owned social media app TikTok from government devices.

Panetta called both the Democrats and the Republicans "very hawkish on China鈥 and said, 鈥渆verybody is very concerned about the relationship.鈥

鈥淚t's not unjustified,鈥 he added.

Panetta had met with current Chinese President Xi Jinping in 2012, right before Xi took office. Panetta said he always found Xi to be a 鈥渧ery, very bright鈥 person who 鈥渄id not operate by talking points,鈥 but noted the Chinese leader has made decisions that have made it difficult to have a 鈥渞elationship of mutual respect鈥 with the West.

Panetta said China 鈥渄oesn鈥檛 benefit鈥 from creating conflict, whether it be over Taiwan, the South China Sea, or sending lethal aid to Russia.

"I suspect that Xi is himself looking for an opportunity to try to open a line of communication,鈥 Panetta said. 鈥淪o I hope that President Biden can soon make a phone call with President Xi, and that ultimately Secretary Blinken can again schedule a visit to Beijing.鈥

鈥淭hat would, I think, be encouraging to the world if we could get back to a more normal relationship rather than a relationship of tension and conflict,鈥 he also said.

Panetta said the West needs to approach China from a 鈥減osition of strength.鈥

"There are areas that we have to make clear that that China cannot cross some lines,鈥 Panetta said.

鈥淏ut having said that, and establish that position of strength, I think that then gives us an opportunity to say there are areas where we can have a dialogue and talk about mutual concerns,鈥 he also said, listing the examples of trade, cybersecurity, and how best to deal with North Korea鈥檚 鈥渁ggressive approach to nuclear weapons.鈥

Meanwhile reports of alleged election interference in Canada by China have dominated Canadian headlines in the last two weeks. Panetta said he understands there are many people in the West who are wary of relations with China.

He said the surveillance balloon from last month 鈥渃ertainly did not sit well鈥 with Canada and the United States, but that people must also recognize a 鈥渃ertain amount of surveillance that goes on by both countries.鈥

Panetta said Western countries need to appreciate there are areas in which it鈥檚 mutually beneficial to deal with China, especially considering its strong economy, and there are ways to do that while being uncompromising on certain issues of concern.

"At the same time, it's also smart to open up areas of dialogue to see whether or not we can achieve some consensus,鈥 he also said. 鈥淚 think it would be very dangerous if we had a world in which, you know, the democracies of the world are constantly confronting the autocracies of the world.鈥

鈥淏ecause ultimately, I think that can lead to worldwide conflict. I don't think China wants that. And I don't think we want that."

With files from CTV鈥檚 Question Period Senior Producer Stephanie Ha