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In a small bowl, combine ¼ cup of the soy sauce, the vinegar, sugar, and ¼ cup water. Set aside.
In a large bowl, whisk together the remaining ¼ cup of soy sauce and the cornstarch until smooth. Add the chicken and toss to coat.
Heat 1 tablespoon of the sesame oil and 1 tablespoon of the vegetable oil in a large skillet over high heat. Once the oil is glistening, working in batches, cook the chicken, stirring, until lightly browned, on both sides, about 8 minutes total per batch. Add the remaining vegetable oil as needed. Transfer the chicken to a plate.
Add the remaining 1 tablespoon sesame oil to the same skillet over medium heat. Once the oil is glistening, add the bell peppers and cook, stirring, until they begin to soften, about 4 minutes. Add the green onions, cashews, ginger, garlic, and dried chili peppers and cook, stirring, until fragrant, about 2 more minutes.
Return the chicken to the skillet and add the reserved sauce. Stir to combine and bring to a simmer. Reduce the heat to medium-low and simmer, stirring occasionally, until thickened, 2 to 3 minutes. Season to taste with salt.
Serve over rice, if desired.