The US leader was greeted with a gun salute, cheering children and a tour of the stunning 15th Century Temple of Heaven.
Trump is also joined in Beijing by tech bosses, including Tesla's Elon Musk and Nvidia's Jensen Huang, and Trump's son Eric.
On Thursday evening, a lavish banuquet at the Great Hall of the People was held in honour of the occasion.
BBC reporters were able to see the banquet menu, with the main course including lobster in tomato soup, Beijing roast duck and pan-fried pork bun.
Dessert options included trumpet shell-shaped pastry and tiramisu.
In a banquet speech, President Xi called it a "historic visit", adding "the great rejuvenation of the Chinese nation" and "Make America great again" can go hand in hand.
China-US relations are the most important bilateral relations in the world, Xi says.
Their relations concern the well-being of the two countries of 1.7 billion population, and the interests of over 8 billion people in the world, he added.
Trump spoke, saying he received a "magnificent welcome like no other".
He then invited Xi and his wife, Peng Liyuan, to visit the White House on 24 September.
Among those spotted at Thurday's banquet were Tesla CEO Elon Musk, Apple CEO Tim Cook, US Defence Secretary Pete Hegseth and Eric and Lara Trump.
Trump landed in Beijing on Wednesday evening, where he was greeted by youths waving American and Chinese flags as he walked the red carpet with Vice President of China Han Zheng.
~ BBC
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