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However, it has also been blamed for generating a number of social problems, especially a decreasing labor force and an ageing population.

Paal acknowledged that to reduce misunderstanding and suspicion between the two sides, "it may have to be something that's only done incrementally, step by step as we go forward."

Zhang's visit came as the two countries celebrated the 25th anniversary of forging diplomatic ties earlier this month. He is also the first Chinese leader to visit Singapore in the wake of Singapore's general election on Sept. 11.

China is the first among world's major countries to set win-win cooperation as its main objective in dealing with ties with other nations, Wang said.

In the afternoon, Xi and Peng enjoyed tea time and Welsh music with Charles and his wife Camilla at Clarence House, after a visit to the parliament.