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Even in the steel sector, overcapacity is not just a "China problem." "Many countries are confronting the problem. It is a global issue," he said. In 2014, China's rate of capacity utilization of crude steel was about the same as the world's average of 73.4 percent.

During the first session, in-depth discussions were held on "global economic situation and challenges" with a focus on global economic policies, implementation of the 2030 Agenda for Sustainable Development, revitalizing global trade, advancing structural reform, labor market policy and international financial regulatory reform.

As the world's most populous nation, the second biggest economy, and above all a powerful driver of global growth, China has every reason to lead.

The remains of Corporal Li Lei, 22, and Master Sergeant Yang Shupeng, 33 who were killed in the incident were on Friday airlifted to Uganda and expected to be returned back home early next week.

In their meeting held after a two-day G20 summit in the resort city of Hangzhou, Xi said China and Japan are important and close neighbors to each other.