Beijing: Chinese President Xi Jinping held talks with his visiting US counterpart Donald Trump on Thursday where they discussed the North Korean nuclear crisis.
The two leaders met at the Great Hall of the People here.
While Xi promised cooperation and coordination on the worsening crisis, Trump said that China has the solution to the problem.
"Our meeting this morning in front of your representatives and in front of our representatives was excellent, discussing North Korea and I do believe there is a solution to that as you do," Trump told Xi.
"We have the capacity to solve world problems for many years to come," Trump, who is on a three-day China visit, said.
In response, Xi said: "China is ready to work with the United States to enhance cooperation and properly manage the differences in a spirit of mutual benefit."
He said that the US and China had "more coordination and cooperation in North Korea nuclear issue and other world challenges.
"Right now China and US relations are at a new starting point."
The tensions between Washington and Pyongyang have escalated after North Korea's test firing of missiles and conducting its most powerful hydrogen test in September.
North Korea fears that the US wants to the reclusive nation to be annexed in the South Korea.
The US wants China to do more to rein in its ally. But China has said that it is not the trouble-maker and has only limited ability to solve the crisis.
Power equations will be changed this time as Xi has become more powerful, because of exalted status in China, and Trump's popularity has taken a hit in the US.
The US President will also chair a business forum and there will be a signing of several bilateral agreements in the Great Hall of the People.
Trump arrived here on Wednesday on a three-day visit, the third leg of his five-nation Asia tour after stops in Japan and South Korea.
This is Trump's first visit to China as US President and the third meeting with Xi this year.
Trump and Xi are also expected to discuss the US trade deficit with China.