Chinese President Xi Jinping held talks with Panamanian President Juan Carlos Varela in Beijing on Friday, saying bilateral relations "turned over a new leaf" with the establishment of diplomatic relations.
Varela is making his first state visit to China after the Central American nation established diplomatic relations with China in June.
"Forging diplomatic relations on the basis of the one-China principle meets the aspiration of generations of people in the two countries," Xi said.
"China-Panama relations have turned over a new leaf," Xi said, adding that China will work with Panama to jointly draw a blueprint for the development of bilateral relations.