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The two sides also had an in-depth exchange of views on international and regional hot-spot issues, including Iran nuclear deal, the situation on the Korean Peninsula, among others.

He said that as the second and third largest economies in the world respectively, China and Japan have close and highly complementary economic ties, and steady development of bilateral relations is in the interests of both sides and is beneficial for regional stability and world prosperity.

"China appreciates Papua New Guinea's firm adherence to the one-China policy and will, as always, support Papua New Guinea's independent choice of development path suited to its national conditions," said Li, stressing that China is willing to link the Belt and Road Initiative with Papua New Guinea's development strategies to make use of their complementary advantages and create more opportunities for cooperation in economy and trade, investment, energy, resources, infrastructure, and industrial capacity.

The circular said that the gradual phasing out of profit-making services provided by the military had begun in 2016 and achieved significant progress, though there was still more work to be done.

China supports Papua New Guinea's hosting of the APEC meeting this year and is willing to cooperate and coordinate more in the multilateral mechanism such as the United Nations, APEC, and the Pacific Islands Forum and in dealing with the climate change issue to safeguard the common interests of developing countries, Li said.