Chinese President Xi Jinping and South Korean President Moon Jae-in reportedly agreed on key principles to resolve the nuclear crisis on the Korean peninsula when they met in Beijing on Thursday.
The two leaders later presided over the signing of seven agreements covering cooperation in areas from food safety to the Winter Olympics.
The visitor said: "In North Korea you should always look not just in front, at the show they want you to look at, but at the back or the sides for interesting things".
"For reasons known to all, China-South Korea relations have experienced some setbacks", Xi said before meeting the South Korean president, quoted in Bloomberg. While the two share a common goal of the denuclearization of the peninsula, China disapproves of South Korea's joint military drills with the USA and the deployment of the Terminal High Altitude Area Defense (THAAD) anti-missile system which, Beijing claims, could interfere with their country's defense system.
South Korea is demanding a formal apology from Beijing after a South Korean photojournalist was severely beaten by more than a dozen Chinese guards while attempting to cover a state visit by its president, Moon Jae-in.
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South Korean soap operas have been pulled off Chinese television and the country's popular K-Pop stars banned from visiting.
Relations were in a "crucial period" where the spat over THAAD might end, China's official Xinhua news agency said in a commentary, adding that moving on from the low point depended on whether South Korea "keeps its word and acts resolutely".
China and South Korea agreed in October to normalise exchanges and move past the dispute, which froze trade and business links.
That set the stage for a visit by South Korean Foreign Minister Kang Kyung-wha to Beijing last month at which she and Chinese Foreign Minister Wang Yi affirmed their commitment to fix relations.
North Korea tested its most advanced intercontinental ballistic missile on November 29, which it said could put all of the United States within range, in defiance of global pressure and U.N. sanctions.
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North Korea famously executed one senior minister believed to have fallen asleep during a speech by the leader Kim.
He and another photographer, who was less seriously hurt, were due to return to South Korea on Friday for further treatment. The visit is also aimed at bringing Seoul and Beijing closer on the thorny question of North Korea, whose nuclear program has raised tensions across the peninsula.
A visit to Pyongyang, North Korea's capital, by Chinese special envoy Song Tao last month appears to have created no breakthroughs.
The Moon-Xi meeting will mark the third bilateral summit between the two leaders, the Korean Herald reported.
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