Starmer's visit to China is the first by a British prime minister since 2018 and follows a slew of Western leaders seeking a rapprochement with Beijing recently, pivoting from an increasingly unpredictable United States.
The leaders met at the opulent Great Hall of the People, with Starmer telling Xi during their meeting that China is a "vital player on the global stage".
"It's vital to build a more sophisticated relationship where we identify opportunities to collaborate, but also allow a meaningful dialogue on areas where we disagree," Starmer told Xi.
Xi also stressed the need for stronger ties with a "long-term view" in the context of what he called a "complex" international situation.
"China and the UK need to strengthen dialogue and cooperation, whether it is to maintain world peace and stability or promote the economies and livelihoods of both countries," Xi told Starmer.
Xi also noted they would need to overcome difficulties in order to move forward but that cooperation would unlock a "new chapter" in their relations.
"Good things often come with difficulties... Leaders will not shy away from difficulties and will forge ahead bravely," he said.
"Cooperation between our two countries will surely take the lead and open a new chapter in China-UK relations and cooperation."
The two leaders will also have lunch together after their meeting.
Starmer, who is in China until Saturday, also met the country's third highest-ranking official Zhao Leji in the morning and is expected to hold talks with Premier Li Qiang in the afternoon.
Zhao said relations were on "the correct track to improvement and development" while Starmer called the visit a chance to "find positive ways to work together".
Britain and China are set to sign a cooperation agreement targeting supply chains used by migrant smugglers, according to Downing Street.
The issue of irregular migrants is highly sensitive for Starmer, who has promised to crack down on people smugglers and stem a wave of arrivals that has fuelled rising support for the far right.
Starmer will also travel to economic powerhouse Shanghai on Friday before making a brief stop in Japan to meet Prime Minister Sanae Takaichi.
- Repairing ties -
London and Beijing enjoyed what they described as a "Golden Era" a decade ago but relations deteriorated from 2020 when Beijing imposed a national security law on Hong Kong and cracked down on pro-democracy activists in the former British colony.
Starmer is expected to discuss the case of Hong Kong media mogul and democracy supporter Jimmy Lai, 78, who is facing years in prison after being found guilty of collusion charges in December.
Human rights abuses, alleged spying and cyber attacks, and China's perceived support for Russia's war in Ukraine have also strained ties.
Nevertheless, China -- the world's second-largest economy -- remains Britain's third-largest trading partner, though UK exports to the Asian giant plummeted 52.6 percent year-on-year in 2025, according to British government statistics.
The visit by Starmer, who took the helm in 2024, follows finance minister Rachel Reeves's trip to Beijing last year, as the centre-left Labour government looks to improve trade relations and fulfil its primary goal of boosting UK economic growth.
He is accompanied by around 60 business leaders from the finance, pharmaceutical, automobile and other sectors, as well as cultural representatives, as he tries to balance attracting vital investment and appearing firm on national security concerns.
Starmer's trip also comes as Britain faces a rift with its closest ally, the United States, following Trump's bid to seize Greenland and his brief threat of tariffs against Britain and other NATO allies.
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