Sitting down for talks with U.S. President Donald Trump, Chinese President Xi Jinping on Saturday said he hoped his meeting with Trump can "set a direction for our relationship in a period to come."

The much anticipated meeting took place on the sidelines of a summit of the Group of 20 major economies in the Japanese city of Osaka.

The two sides agreed to jointly promote Sino-U.S. relations based on coordination, cooperation and stability in accordance with the principles and directions set by the two leaders.

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The spirit of 'ping-pong diplomacy'

At the beginning of their meeting, President Xi recalled the 1971 meeting in the Japanese city of Nagoya between Chinese and U.S. table tennis players.

He said, "48 years ago, in 1971, in a place called Nagoya, just over 100 kilometers from here, Chinese and American ping-pong players participated in the 31st World Table Tennis Championships and had friendly interactions with each other."

"That marked the beginning of what we now call 'ping-pong diplomacy.' The small ball played a big role in moving world events," Xi added.

Eight years later, China and the United States established diplomatic relations, Xi said.

Trump for his part recalled his state visit to China in November 2017 that he'd spent a lot of time with Xi, adding that they have an excellent relationship. 

"We've become friends. My trip to Beijing with my family was one of the most incredible of my life," he said. "I think this could be a very productive meeting." 

Hailing the Chinese culture as "incredible," Trump noted he witnessed the great achievements China reached during his visit. 

I harbor no hostility towards China, he stressed. 

The U.S. president said he hopes for better relations between the two countries, cherishes good relations with President Xi and is willing to strengthen cooperation with China.  

Cooperation and dialogue are better than friction and confrontation

When talking face to face, Xi told Trump that 40 years of China-U.S. diplomatic relations have shown that cooperation and dialogue are better than friction and confrontation.

The Chinese president noted since the establishment of diplomatic relations 40 years ago, enormous changes have taken place in the international situation and China-U.S. ties.

"One basic fact remains unchanged - China and the United States both benefit from cooperation and lose in confrontation,” he stressed.

While talking about the difficulties China and the U.S. are facing now, President Xi told Trump the two sides should not fall into the so-called trap of conflict and confrontation as the two sides’ interests are highly enmeshed in various areas of cooperation.

Xi, Trump agree to restart trade consultations

During the meeting, Xi and Trump agreed the two countries should restart trade consultations on the basis of equality and mutual respect. 

The two countries' economic and trade negotiating teams will discuss specific issues and the U.S. side said it will not impose new tariffs on Chinese goods. 

On trade issues, President Xi stressed that the essence of China-U.S. economic and trade cooperation is mutually beneficial and win-win, adding the two sides should become good cooperation partners, which is beneficial to China, the U.S. and the world at large.

China is sincere in continuing negotiations with the U.S. to control differences, but the negotiations should be based on mutual respect and address each other's legitimate concerns, Xi emphasized. 

The Chinese president also pointed out that China must safeguard its core interests on issues involving China's sovereignty and dignity.

On differences between China and the U.S. , Xi said the two largest economies should ultimately find solutions that can be accepted by both sides through dialogue and consultation.

Trump said the U.S. hopes to properly resolve the trade balance between the two countries through consultations and provide fair treatment for enterprises from both countries, adding the U.S. is willing to reach a trade deal with China which is mutually acceptable and will be of historical significance. 

On Taiwan and Korean Peninsula issues

Xi reiterated China's stance on the Taiwan issue during the talks. Trump said he values China's concern on it and the U.S. will continue to adhere to the one-China policy.

Speaking of the Korean Peninsula issue, Xi said China welcomes the U.S. and the Democratic People's Republic of Korea (DPRK) staying in touch and maintaining dialogue. He said he hopes the two sides can meet each other halfway and restart their conversation as soon as possible. 

Xi also added that China is willing to play a constructive role in the Korean Peninsula issue. 

Trump said the U.S. pays great attention to China's role in the issue and will maintain communication with China in this regard. 

Fair treatment

In addition, Xi said he hopes the U.S. can treat Chinese enterprises and students in the country in a fair way, to ensure the normal cooperation of trade investment of the two countries and the normal exchanges between the two peoples. 

Trump said there are lots of excellent students in China and he always welcomes Chinese students to study in the U.S.