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The two countries' trade imbalance is easing as middle-income Chinese generate a huge demand for imported products, according to both US and Chinese official data.

The transaction is expected to close by the end of 2019, according to the statement.

The train will pass through Kazakhstan, Russia, Belarus, Poland and Germany, reducing the transport time to France by nearly 20 days compared with ocean shipping. The journey will take about 18 days.

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The two sides will work together to strengthen the construction of intelligent connection, smart family, new applications of information and communication technology (ICT), internet finance and IoT for China Telecom, and new retail, manufacturing, finance, technology and energy resources for Alibaba.

The transaction, which is valued at 29 billion yuan (.16 billion), is expected to be completed when the Chinese authorities remove limits on foreign ownership in passenger car joint ventures in 2022.

The uncertainties resulting from China-US disputes in trade and the technology sector and the decline of the global economy may also pose risks for China as these factors could hit the country's exports. In addition, the possibility of a re-escalation of the COVID-19 pandemic as the weather cools down in the third and fourth quarters also means that policy easing may step up again, economists said.

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The two members of the Association of Southeast Asian Nations (ASEAN) also agreed to work together with China towards greater progress in China-ASEAN cooperation.

The two countries should boost the connection of their development strategies and enhance cooperation on industry and innovation, Xi said. He called on the two countries to cultivate new areas and explore new fields for cooperation and to expand their win-win cooperation.

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The train would reduce travel time for passengers and freight between Chiriqui province and the national capital, which can take eight to 10 hours on the Pan-American Highway, as well as serve cities along its route. Flights between David and Panama City take about an hour.

The trains mainly link Urumqi, the regional capital, and many important cities in northern and southern Xinjiang as well as tourist destinations, the company said.