Place all ingredients - except the cornstarch-water mixture - in a sauce pan or pot.

Bring to a rolling boil.

Reduce heat to medium and let boil for 10 minutes, or until reduced by half.

(Note that the vinegar will be quite pungent as it burns off.

Generally, I find rice vinegar less strong than regular white vinegar).

Reduce heat to low and add the cornstarch-water mixture.

Stir to incorporate and continue stirring occasionally until the sauce thickens (about 2 minutes).

Remove from heat and taste-test.

You should taste "sweet" first, followed by sour, then spicy and salty notes.

If the sauce isn't sweet enough, add a little more sugar.

If not spicy enough, add more chili.

Pour sauce into a small bowl or jar and serve as a condiment with chicken, fish, and seafood, or as a dip with finger foods such as chicken wings, shrimp, or spring rolls.

Also makes an excellent marinade for grilled chicken, fish, or seafood.