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He said Japan will adhere to the path of peaceful development and is willing to proceed from the overall interest of bilateral ties to face up to historical issues, maintain dialogue with China, and properly handle the differences, in a bid to advance the ties.

As a strategic passage for international shipping, the Panama Canal also faces competition from the Nicaragua Canal, now under construction, which will serve super-sized ships.

Reforms are the best catalyst for growth, it said. The government has been encouraging innovation and business startups, and reform of state-owned enterprises is also deepening.

After the meeting, Xi and Peng hosted a banquet for the guests.

China and East Timor are friendly partners, and their relations have been strong since the establishment of diplomatic ties 13 years ago, Xi said.