China and Britain toasted Tuesday for "new heights" of their relations to conclude the first full day of President Xi Jinping's state visit marked with grand royal reception and rare honor of addressing both houses of parliament.

Having decided to become China's best friend in the West, London has been waiting for the state visit, the first one to Britain by a Chinese president in a decade, which is believed to herald a "golden" era for bilateral ties.

As a symbol of great importance Britain attaches to its relations with the world's second largest economy, the royal family hosted an array of welcoming activities for Xi for a long day: the morning greeting, ceremonial welcome, private lunch, afternoon tea as well as close talks with the Chinese president.

The queen held an elegant state banquet at Buckingham Palace Tuesday night with Prince William's wife Kate, the Duchess of Cambridge, dressed in red, China's favorite color.

Earlier in the day, Xi addressed both houses of parliament, a privilege only accorded to a few foreign leaders.

He noted his deep impression with "the vitality of the China-UK relations and the profound relationship between our peoples," voicing his hope that the visit would lift the ties to "new heights."

He was echoed by the queen later at the state banquet who described Xi's visit as a "defining moment" in the future of China-UK relationship which is now "truly a global partnership."

Royal reception

The Chinese president was honored with a gun salute of 103 rounds in unexpected London sunshine at noon as the 89-year-old queen and her husband, the Duke of Edinburgh, formally welcomed him and his wife Peng Liyuan at Horse Guards Parade in central London.

Xi, accompanied by the Duke of Edinburgh, inspected a Guard of Honor, while the queen and Peng, dressed in white, stood on the terrace.

Then, as the military band played national anthems of both countries, Xi joined the queen for a gilded state carriage procession along The Mall to Buckingham Palace, where Xi and Peng will stay during their trip.

Red Chinese flags and red, white and blue British ones decorated the procession route along which thousands of people cheered and waved hands to the leaders.

Following a private lunch at Buckingham Palace with the queen, Xi and Peng were invited to view a Picture Gallery exhibition of items from the Royal Collection with a Chinese theme. The pair also visited the Palace of Westminster.

Earlier in the day, Prince Charles, heir to the throne, and the Duchess of Cornwall greeted Xi and Peng at the Mandarin Oriental Hotel and escorted them to Horse Guards Parade.

In the afternoon, the quartet joined again to have tea at Clarence House after viewing a display by The Prince's School for Traditional Arts.

Xi also met with Prince William, who made the first high-level British royal visit to China this March since the queen's 1986 visit.

In the evening the queen held a state banquet before which more than 100 candles in silver-gilt candelabra, many from George IV's reign, were lit to welcome the guests.

"We have much reason to celebrate the dynamic, growing economic relationship between our countries," the queen told around 170 participants to the banquet.

In his turn, Xi recalled the contributions made by the two great nations to the development of mankind and their fighting history as allies during World War II.

As founding members of the United Nations and permanent members of the UN Security Council, China and Britain share sacred responsibility of safeguarding world peace and development, Xi said.

The enthusiastic welcome from the British side is a "step forward for bilateral ties" and represents "the West and the East warmly embracing each other for a better future," said Fu Xiaolan, a professor at Oxford University.

Community of shared interests

On Tuesday afternoon, Xi delivered an 11-minute address in the Royal Gallery to both Houses of Parliament, with more than 500 people listening.

China and Britain are increasingly interdependent and are becoming a "community of shared interests," Xi said as being accompanied by British Prime Minister David Cameron, leader of the opposition Jeremy Corbyn, and other political figures.

Quoting Shakespeare and ancient Chinese proverbs, the president told the join sitting that the legislative bodies should build a bridge of understanding and cooperation.

The comments came as the two countries' economic and trade cooperation has laid a solid foundation for China-UK relations in recent years.

Britain is China's second largest trading partner and No. 2 investment destination in the European Union, as well as a leading offshore RMB trading center only after Hong Kong.

Dr. Wu Kegang, chief China adviser to the British Chambers of Commerce, told Xinhua that Xi's speech reflected a new era in China-UK relations and the visit "will put Britain ahead, particularly in Europe, in the relationship with China."

Despite its focus mainly on political concerns, Xi's parliamentary address was hailed by many politicians as an important hint for investment opportunities.

"There was no mention in the speech about specific deals or contracts, but that doesn't matter," Wu said. "What is important is a clear indication for the long term in China's friendship with Britain."

The tone of Xi's speech pointed to China wanting to partner projects in Britain, which should be welcomed, said British member of parliament Louise Ellman, chair of the House of Commons Transport Committee, who is eager to see cooperation in infrastructure projects.

"Providing local people are involved in building these projects and the right conditions are met, we should welcome investment from China," Ellman told Xinhua.

During a meeting with Corbyn, Xi said China is willing to maintain communication and cooperation with the Labor Party, hoping it could make continuous efforts to the development of China-UK relations.

On Wednesday, a more business-like day in Xi's visit, the president will hold talks with Cameron before attending the UK-China business summit whose the focus will be on investment, infrastructure and innovation.

Xi will also deliver a speech at the dinner hosted by the Lord Mayor and the City of London at the Guildhall.

A number of deals are expected to be signed between governments, financial institutions and enterprises in various fields.

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