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China's competitive production capacity and the human resources in the Middle East, when combined, will deliver more and better job opportunities for the region, Xi said.

"Instead of looking for proxies, China promotes peace talks in the Middle East; instead of seeking any sphere of influence, China calls on all nations in the region to take part in the Belt and Road Initiative; and instead of attempting to fill any 'vacuum', China aspires to build a network of mutually beneficial partnerships," he said.

But he also admitted China's service trade is still not competitive enough in the world.

"China stands ready to work with Iran to lift our mutually-beneficial cooperation in such fields as politics, economy and trade, energy, infrastructure, security, and cultural and people-to-people exchanges to a new stage," the president said.

"Such demarcation will play a positive role in boosting the region's economic and social development," Xi said.