He hailed the China-Pakistan all-weather strategic cooperative partnership as a special friendship shaped and developed during a long time of mutual support and close cooperation.
He also said the two sides should boost people-to-people exchanges, strengthen anti-terrorism cooperation and increase coordination and communication on multilateral platforms such as the United Nations and the Shanghai Cooperation Organization.
India Wednesday said it has lodged strong protests with China and Pakistan over the proposed bus service between the two countries through Pakistan-administered Kashmir (PaK) under the China-Pakistan Economic Corridor (CPEC) project.
He had said, "So-called China-Pakistan "Boundary Agreement" of 1963 is illegal and invalid, and has never been recognised by the Government of India".
Xi appreciated Khan for repeatedly stressing that he would view the relations with China as a political cornerstone in Pakistan's foreign policy and would unswervingly promote the construction of the China-Pakistan Economic Corridor (CPEC).
The Prime Minister said CPEC was going in stages including roads, development of Gwadar, which was the second deepest port after Singapore, and some power projects that became part of CPEC.
China has repeatedly said that the Indian-Pakistani territorial dispute had to be settled through dialogue between the two sides.
China maintains that the Kashmir issue should be resolved bilaterally between India and Pakistan through dialogue and consultation.
Mr Khan's visit evoked considerable interest in China as it comes in the wake of his past criticism of the Dollars 50 billion China-Pakistan Economic Corridor (CPEC) projects and remarks by his ministers to cut down some of the projects over debt concern.
It is also seeking fresh loans from Saudi Arabia and China, discussion of which is expected to dominate Khan's visit.
The prime minister said he had watched other world leaders but the people of Pakistan were very impressed with the way China had progressed under President Xi. Unfortunately, we have inherited a very hard economic situation.
During the meeting, Khan thanked President Xi for extending warm hospitality to him and his delegation in China.
"Khan's trip is important for reasons beyond the immediate financing needs", Uzair Younus, a South Asia director at Washington-based consultancy Albright Stonebridge Group LLC, said by email.
Pakistan and China on Friday reaffirmed their complete common understanding on early realisation of CPEC projects besides agreeing to continue strategic communication on regional and global issues of importance.
The two foreign ministers discussed building the bilateral relationship further along the lines of the 10-point agenda covering multifaceted practical cooperation.