The leaders are meeting amid tensions in the Middle East and the blockade of the Strait of Hormuz
Presidents Donald Trump and Xi Jinping shook hands ahead of bilateral talks in Beijing on Thursday, marking the first visit by a US president to China since 2017.
In his opening remarks, Xi said he had always believed that the two countries "have more common interests than differences."
"A stable bilateral relationship is good for the world. China and the United States both stand to gain from cooperation and lose from confrontation. We should be partners, not rivals. We should help each other succeed and prosper together," Xi said through an interpreter.
The Chinese leader also congratulated Trump on the upcoming 250th anniversary of US independence, which will be celebrated in July.
Trump praised the "fantastic relationship" he said he had enjoyed with Xi during his first term in office. "We've gotten along when there were difficulties, we worked them out. We are going to have a fantastic future together," he said.
Trump also told Xi that he had "such respect for the job" he had done as China's leader. "You're a great leader. Sometimes people don't like me saying it, but I say it anyway because it's true," he added.
"The relationship between China and the US is going to be better than ever before," Trump said
On Thursday morning local time, Trump arrived at the Great Hall of the People, the seat of the Chinese government. He and Xi greeted each other and posed for photographs before beginning bilateral talks.
The leaders then inspected troops lined up in Tiananmen Square.
Trump's trip comes amid a fragile ceasefire between Iran and Israel and the continuing blockade of the Strait of Hormuz, a vital waterway that normally handles around 20% of global oil and liquefied natural gas trade.
US Secretary of State Marco Rubio said aboard Air Force One en route to Beijing that the US would seek to persuade China to play "a more active role" in negotiations with Iran. Washington had previously sanctioned Chinese refineries and satellite companies accused of aiding Tehran. China denounced the restrictions as illegal under international law and ordered domestic companies not to comply.
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