BEIJING, Jan. 11 (Xinhua) -- Chinese President Xi Jinping said Thursday that China has always supported the improvement of relations between South Korea and the Democratic People's Republic of Korea (DPRK), as well as their reconciliation and cooperation.

In a telephone conversation with his South Korean counterpart Moon Jae-in, Xi said China supports the two sides in promoting inter-Korean dialogue and exchanges to gradually advance the settlement of the Korean Peninsula issue.

Currently, challenges and opportunities co-exist on the Korean Peninsula, Xi said, expressing the hope that the PyeongChang Winter Olympics will not only bring about opportunities for inter-Korean dialogue, but also help improve the situation on the peninsula.

Xi said China is willing to enhance communication and cooperation with all sides concerned, including South Korea, to pursue a positive outcome of the situation.

For his part, Moon said his country attaches great importance to China's important role in solving the dilemma on the Korean Peninsula, and appreciates China's support for inter-Korean dialogue and efforts to push for settlement through dialogue and safeguard peace and stability on the peninsula.

In their conversation, Xi recalled that Moon has paid a successful state visit to China not long ago, during which both sides reached important consensus on developing the China-South Korea strategic cooperative partnership and enhancing coordination on major regional and international issues.

Noting that the two countries have also strengthened mutual trust and cooperation during Moon's visit, Xi said China is pleased with the improvement of bilateral ties.

For the new year, China is willing to work with South Korea to boost strategic communication, promote practical cooperation, properly address sensitive issues, strive for greater achievements in bilateral relations, and jointly promote regional peace and stability, Xi said.

The Chinese president said his country supports South Korea in holding the PyeongChang Winter Olympics and wished the games success.

Moon thanked Xi again for the hospitality during his visit to China and for China's support to the PyeongChang Winter Olympics, saying he expects their strategic cooperative partnership to maintain development momentum and achieve greater progress in the new year.