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The two Asian leaders displayed a united front on free trade as Xi called on Abe to join hands with China in upholding multilateralism and an open world economy.

Saying Japan welcomes and supports China's efforts in furthering opening-up, Abe expressed Japan's willingness to intensify exchanges with China to lay the social foundation to improve bilateral ties.

"We hope both sides would work hard to promote regional peace, safeguard multilateralism and free trade, and become the axis of stability, growth and momentum for not just Asia but the world", Mr Li said in the speech on Thursday.

On the Taiwan issue, Abe reaffirmed Japan's adherence to its position stated in the 1972 Japan-China Joint Statement. "In other words India, Japan plus one", said Gokhale.

Abe and Chinese president Xi Jinping are expected to discuss how to improve economic cooperation as the world's second and third largest economies prepare to weather a United States onslaught of trade measures.

Abe also said that Japan and China share significant responsibility to contribute to the stability and prosperity of Asia and the world, and that the two countries shouldering the responsibility together is also a response to the expectations of the global community.

Abe was in China for the first formal bilateral summit in seven years. "Whenever they feel the need to take it out, I'm sure they will do that".

Japanese Prime Minister Shinzo Abe and Chinese Premier Li Keqiang also agreed the two countries would work together to achieve denuclearisation on the Korean Peninsula.

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As close neighbors, Japan and China should push forward bilateral ties on the basis of the principles set in their four political documents and in the spirit of "cooperating in a mutual-beneficial way and never posing a threat to each other", he said.

Faced with the threat of a trade war with the United States, China and Japan have chose to work together to develop new overseas markets, by focusing on collaboration instead of competing with each other.

Japan's relations with its biggest trading partner turned hostile in 2012, when it nationalized part of a disputed East China Sea island chain, sparking sometimes violent protests and damaging business ties.

Diplomatic observers said the spat between China and the USA provided an excuse for Beijing to get closer to Tokyo, but said that tensions between the two could still erupt.

Washington's ire has also unnerved Beijing as the Trump administration has vacillated on issues that are meant to be the cornerstone of Sino-U.S. relations, such as questioning the "One China" policy, in the wake of President Trump's election. Even as Trump's trade conflict with China rages, the Japanese auto giant Toyota plans to increase production in China by 20 percent, expanding plants in two major Chinese cities, according to news reports in Japan.

The incident prompted anti-Japanese riots in China, and kicked off a frosty spell that has only recently begun to thaw.

Abe also said that his talks with President Xi in Vladivostok, Russia in September and his scheduled visit to China this time mean that the bilateral relationship is advancing steadily toward a new phase. "Also, we are sharing more common interests and concerns in multilateral and wider areas", Xi said.

The visit, which featured Japanese flags hung in the heart of Beijing, marks a dramatic outward improvement in ties from six years ago.