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The consensus reached by the two heads of state shows that the two sides are ready to compromise and find solutions to problems, said Alexei Maslov, head of the Asian Studies Department at the Russian Higher School of Economics, National Research University.

According to Panamanian President Juan Carlos Varela, establishing diplomatic ties with China was "the right thing to do." The decision was lauded by Xi as "a feat of a hero."

China has made positive progress in pushing forward the pilot reform, and will focus on key links and outstanding problems to implement reform measures thoroughly, he said.

"The past 40 years have witnessed tremendous achievements in China's development and remarkable improvement of people's livelihood, from shortage to abundance, from poverty to moderate prosperity," Xi said.

"In recent years, trade liberalization has stalled. And in just the last few years, we have seen the acceleration of the return to protectionism," he said, adding that "The escalation of tariffs will negatively affect the entire global growth outlook and slow down the pace of poverty reduction ..."