Leaders of S. Korea, China mend ties, reaffirm efforts to denuclearize N

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South Korea's decision to allow US's THAAD missile defense system to be installed within its territory will also improve its bilateral relationships with China attracting Chinese Tourists.

The leaders of South Korea and China, moon Jae-In and XI Jinping have agreed on the peaceful settlement of relations with North Korea.

The two last met in Berlin in July before the Group of 20 summit in Hamburg, Germany. There are also signs of a battle of nerves for economic leadership in the Asia-Pacific region between the USA and China, dominant players in the global economy. Moon was the second leader Xi held bilateral talks with that day, following Vietnamese President Tran Dai Quang, and followed by the leaders of Japan and the Philippines.

By agreeing on Moon's visit to Beijing in December, the first step is now seen as having been achieved. Indonesian President Joko Widodo welcomed his South Korean counterpart at a palace in a botanical garden near the country's capital on Thursday afternoon.

"The Special Strategic Partnership places greater emphasis on concrete cooperation for the benefit of the two countries and peoples in various fields, particularly in key industries and infrastructures, and on strengthening the two countries' contribution to the region and the world, especially through their joint efforts including triangular cooperation framework", they said in a joint statement issued after their bilateral summit.

Indonesia and South Korea established diplomatic ties in 1973.

Moon said to Xi during the meeting, "Korea-China relations briefly faced difficulty, but on the other hand, it was an opportunity to reconfirm how valuable we are to one another".

"Also, I am glad that our two countries have agreed to normalize exchanges and cooperation in all areas", Moon said, according to Cheong Wa Dae pool reports.

The Chinese president also underscored the importance of South Korea-China relations, saying the conditions on the Korean Peninsula were at a "pivotal" juncture.

On Sunday, Moon will head to Manila for the East Asia Summit.