In the first bilateral meeting between a British prime minister and the Chinese leader since February 2018, Starmer told Xi the UK wanted "consistent, durable, respectful" bilateral relations.
But he also warned that London was "committed to the rule of law," in a nod to various disputes which have soured ties in recent years.
They include the case of British national Jimmy Lai, a media tycoon and pro-democracy activist imprisoned in Hong Kong, whose case Starmer raised directly with Xi.
The Chinese leader in turn told Starmer, who took power in July, that the two countries had "vast space for cooperation," according to China's state media.
"China and Britain should uphold their strategic partnership and open up new prospects for China-UK relations," Xi said.
However, he also hinted at the strained nature of ties between Western nations and China -- a key ally of Russia in its war in Ukraine -- as US President-elect Donald Trump's second term looms.
Trump is expected to once again pursue a hardline policy towards Beijing.
"The world is currently entering a new period of turbulence and change," Xi told Starmer, adding that their respective countries "shoulder the important task of... responding to global challenges."
Xi also met Monday with Australian Prime Minister Anthony Albanese and lauded "positive progress" in ties, according to Chinese state media, after strains in recent years.
- 'Avoid surprises' -
The leaders of Britain and China last met for in-person bilateral talks nearly seven years ago, when ex-prime minister Theresa May travelled to Beijing to try to boost trade as Brexit loomed large.
Relations have since been on a downward spiral, in particular over UK criticism that special freedoms guaranteed under Hong Kong's mini-constitution have been eroded and China's ties with Russia amid the Ukraine war.
Recent years have seen claims of Chinese espionage and political interference in the UK, as well as alleged Beijing-backed cyberattacks, prompting some British lawmakers to demand a harder line against Beijing.
But Starmer sees the opportunity for a reset, as Britain explores all avenues to boost flatlining economic growth.
"We want our relations to... avoid surprises where possible and strengthened dialogue should provide stronger understanding," Starmer told Xi.
A "strong UK-China relationship is important for both of our countries" and for the "broader international community," he said, promising London would be a "predictable, consistent, sovereign actor."
Starmer also proposed holding a full bilateral meeting in Beijing or London.
Downing Street said later that the pair agreed that Finance Minister Rachel Reeves should visit Beijing next year "to discuss economic and financial cooperation with her counterpart, Vice Premier He Lifeng."
- Jimmy Lai -
As journalists were ushered out of the room, Starmer could be heard raising several contentious issues between the two capitals, including Lai's case.
The 76-year-old tycoon and founder of the now-shuttered tabloid Apple Daily is accused of colluding with foreign forces, which could see him sentenced to life in prison.
He will take the stand Wednesday in his national security trial, speaking in court for the first time despite five previous trials in almost four years.
The case centers around the newspaper's publications, which supported huge, sometimes violent pro-democracy protests in 2019 and criticized Beijing's leadership.
Western countries, the United Nations and rights groups have slammed the case as freedom-curtailing and urged Lai's release, while concerns have been raised around his health.
"We are concerned by reports of Jimmy Lai's deterioration, (his) health in prison," Starmer told Xi, while welcoming a meeting last month between Foreign Secretary David Lammy and his Chinese counterpart "to discuss respective concerns."
They included "human rights and parliamentary sanctions, Taiwan, the South China Sea and our shared interest in Hong Kong," Starmer said.
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