Finely chop the red chili and mince the garlic cloves. Smaller pieces spread their flavor evenly through the sauce. You can remove the chili seeds for a milder sauce.

Add water, rice vinegar, sugar, honey, chili, garlic, soy sauce and salt into a small saucepan. Stir everything together until the sugar starts dissolving.

Place the saucepan over medium heat. Stir gently while the mixture warms. Let it reach a gentle simmer. Avoid boiling it too aggressively because the vinegar can become sharp.

Mix cornstarch with two tablespoons of cold water in a small bowl. Whisk until completely smooth. Make sure there are no dry lumps before adding it to the sauce.

Slowly pour the cornstarch mixture into the simmering sauce. Whisk constantly while adding it. Continue cooking for about two minutes. The sauce should become glossy and slightly thick.

Remove the saucepan from the heat. The sauce will continue thickening as it cools. It should coat the back of a spoon without becoming overly thick or sticky.

Let the sweet chili sauce cool at room temperature for several minutes. Do not worry if it seems slightly thin while hot. Cooling gives it the perfect dipping consistency.

Pour the cooled sauce into a clean glass jar. Cover it tightly and refrigerate. Serve it cold or slightly warmed with your favorite crispy foods and grilled dishes.