Chinese President Xi Jinping called on Saturday for a "smooth transition" in Beijing's relationship with Washington and praised outgoing President Barack Obama for strengthening ties between the two nations.
During a meeting in Peru, Obama again urged all sides in the dispute over the South China Sea to reduce tensions and resolve their disputes peacefully.
He also encouraged China to advance economic reforms, including a transition to a market-determined currency exchange rate.
The meeting on the sidelines of an Asia-Pacific forum is expected to be the last between the two leaders before President-elect Donald Trump enters the White House. Trump has been sharply critical of China.
