The two leaders rounded off the first full day of a closely watched summit in the Chinese capital with the banquet in a red-carpeted dining room in the lavish Great Hall of the People abutting Tiananmen Square.

Trump also said he had invited Xi and his wife Peng Liyuan to visit the White House on September 24.

Live images streamed before the leaders arrived showed a jovial atmosphere, with several among the top brass of China's ruling Communist Party seen chatting and smiling with members of Trump's administration.

Servers in traditional red clothing were seen bustling between colourfully adorned tables, where attendees dined on dishes including Beijing roast duck, pork buns and tiramisu.

The buoyant mood belied major frictions in the relationship between the world's top two economies.

Washington and Beijing have long clashed on a wide range of issues including trade, technology and Taiwan, the self-ruled island that is claimed by China.

Ties have been complicated further since the United States and Israel launched the war with Iran, which has relied on China as its top buyer of oil, on February 28.

Xi said in his remarks at the banquet that China's advancement could go "hand-in-hand" with "making America great again" -- a direct reference to Trump's signature political slogan.

However, Xi also warned Trump earlier that missteps by the United States on Taiwan could push their two countries into "conflict".

Trump has not mentioned the sensitive issue of Taiwan since arriving in Beijing on Wednesday evening, ignoring multiple questions from reporters on the subject following his talks with Xi.

Friday's schedule will involve further talks between the two top leaders, as well as a tea reception, before Trump boards Air Force One for his flight back to Washington.

burs-pfc/dhw/pbt