Putin arrived in Shanghai early Tuesday and will attend the fourth Summit of the Conference on Interaction and Confidence Building Measures in Asia scheduled for Tuesday and Wednesday in Shanghai, Xinhua reported.
At the beginning of the talks, Xi extended a warm welcome to Putin on his China visit, his first since Xi took office.
Recalling their last meeting in Sochi during the Winter Olympics in February, Xi said the meeting had made full arrangements for China-Russia ties and also marked a good start for relations this year.
Xi said he will sign a "substantial" joint statement with Putin aimed at expanding cooperation in all fields and coordinating diplomatic efforts to cement the China-Russia all-round strategic partnership of cooperation.
They will also witness the signing of a range of important cooperation agreements and contracts, Xi said, adding that Putin's current trip will be very fruitful.
Describing China as the largest trading partner of Russia, Putin said bilateral trade volume hit nearly $90 billion last year and believes will hit $100 billion by 2015.
He urged closer cooperation in the areas of aviation, aerospace, industrial production, energy and culture.
Putin said China-Russia cooperation, including in the UN, has become an important factor for global peace and stability.