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Briefing the leaders on China's Belt and Road initiatives, including the establishment of the Asian Infrastructure Investment Bank and the Silk Road Fund, Xi said there is much convergence between the development strategies of many countries and the initiatives. He suggested these countries cooperate with each other in pursuit of common development.

"What I would like to emphasize is that we do not wish to define these disputes as military issues because they are political and diplomatic issues and they require political and diplomatic solution," said the ambassador.

"It is necessary for China to develop a modern maritime military force structure commensurate with its national security and development interests, safeguard its national sovereignty and maritime rights and interests, protect the security of strategic sea lines of communication (SLOCs) and overseas interests, and participate in international maritime cooperation, so as to provide strategic support for building itself into a maritime power," the report says.

The Eastern Star incident on the Yangtze River could become China's deadliest shipping accident in almost seven decades. Over 450 people were onboard the ship when it sank on Monday night after being hit by a tornado in Jianli, Hubei Province.

Besides launching the fund, the two sides also agreed to match up their lists of priority areas and specific projects in bilateral production capacity cooperation and hammer out a list of early harvest projects.