BEIJING, May 14 (Reuters) - China’s Xi Jinping hailed positive trade negotiations with the United States at the start of a two-day summit with President Donald Trump in Beijing on Thursday, with discussions also set to cover the Iran war and U.S. arms sales to Taiwan.

With his approval ratings dented by his entanglement in the Middle East, Trump’s hotly anticipated trip to China - the first by a U.S. president to America’s main strategic rival since his last visit there in 2017 - has taken on added significance.

“You’re a great leader, sometimes people don’t like me saying it, but I say it anyway,” Trump told Xi after the Chinese leader treated him to a grand reception at Beijing’s imposing Great Hall of the People, featuring an honour guard and throngs of children excitedly waving flowers and U.S. and China flags.

“There are those who say this may be the biggest summit ever,” Trump said. “It’s an honour to be with you. It’s an honour to be your friend and the relationship between China and the USA is going to be better than ever before,” he added.

Xi opened the summit by telling Trump that stable China–U.S. relationship benefits the entire world. “When we cooperate, both sides benefit; when we confront each other, both sides suffer.”