In a summit held Thursday, Moon and Xi agreed to improve the countries' bilateral ties, along with joint efforts to rid North Korea of its nuclear weapons and ballistic missiles.

The leaders have also agreed to set up a direct communication hotline between them.

"Through such agreements, the relationship between the two countries has moved to the next level, forming a strategic cooperative partnership that is strong and mature enough not to falter at outside factors," the president told the meeting, according to Cheong Wa Dae pool reports.

Seoul-Beijing ties have been at their lowest ebb amid a Chinese protest against the deployment of the THAAD US missile defense system in South Korea earlier in the year.

The countries agreed to put their relationship back on a normal track in a joint statement issued Oct. 31, but many believed China continued to hold a grudge, at least until the latest Moon-Xi summit that marked the third of its kind.

Xi asked Moon to respect and faithfully implement the Oct. 31 statement, Cheong Wa Dae officials said earlier.

However, Chinese Prime Minister Li Keqiang said the countries will finally move forward again when meeting Moon for bilateral talks in Beijing on Friday.

"The cooperation projects between the two countries that have been suspended may be resumed following President Moon Jae-in's visit this time," the Chinese premier was quoted as saying.

During Moon's trip, the two countries signed an agreement for the launch of negotiations to expand their bilateral free trade agreement (FTA), which currently deals only with products. The future negotiations seek to expand the FTA to the service and financial sectors.

"From now, the two countries will cooperate more closely for the peace and co-prosperity in the Korean Peninsula and Northeast Asia," the president said.

The president noted his China trip also wrapped up his overseas activities for the year, which he said sought to restore or repair his country's diplomatic ties with other countries.

"In seven months since my inauguration, I visited seven countries and held some 40 summit meetings. Through such efforts, I have somewhat addressed the most urgent issues, such as filling the gap in our diplomatic efforts," he said.

"I seek to continue pushing for practical diplomacy that places top priority on our national interest and people. I will actively seek to protect our national interest through efforts to ensure security and peace while promoting economic development. I will also do my utmost to guarantee safety and interest of our people," the president added. (Yonhap)