Xi called on both sides to strengthen exchanges in culture, education, science and technology, among others.
Thanking China for its support for the just cause of Palestine, Abbas said Palestine will continue to support the one-China policy and China's reunification.
Palestine admires China's achievements in economic and social development and is willing to have closer high-level exchanges with China and participate in the Belt and Road Initiative, Abbas said.
Palestine spoke highly of China's constructive proposals on promoting a political solution to the Palestine issue and hopes to see China play a greater role in Middle East peace process, Abbas said.
After the talks, the two heads of state witnessed the signing of cooperation documents ranging from diplomacy, economy and personnel training to culture.
Abbas awarded the highest Palestinian medal to Xi for China's support to the just cause of Palestine and to pay homage to Xi himself.
Thanking Abbas for the medal, Xi said it represents the importance Palestine gives to bilateral ties with China and the acknowledgement of China's fair stance on the Palestine issue.
China will unswervingly push forward relations with Palestine and the Middle East peace process, Xi said.
Prior to the talks, Xi held a red-carpet welcome ceremony for Abbas at the Great Hall of the People in Beijing.
Abbas is on a state visit to China from July 17 to 20 at the invitation of Xi.
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