The US and China have agreed to continue working towards narrowing differences and expanding practical cooperation on regional and global challenges to maintain "sound development" in bilateral relationship and to strengthen coordination in achieving denuclearisation of the Korean Peninsula.

President Barack Obama met Chinese Premier Li Keqiang on Monday on the sidelines of the 71st UN General Assembly session.

According to a readout of the meeting provided by the White House, the two leaders "agreed to continue efforts to narrow differences and expand practical cooperation on regional and global challenges in order to maintain sound development in the bilateral relationship."

Both leaders also condemned North Korea’s September 9 nuclear test and "resolved" to strengthen coordination in achieving the denuclearisation of the Korean Peninsula, including by invigorating cooperation in the UN Security Council and in law enforcement channels on North Korea.

Obama will make his final address as US President today on the opening day of the General Debate as the US goes into the last leg of the 2016 presidential race and votes to elect a new leader in November.

The two leaders noted the important contributions of the economic relationship to the broader bilateral relationship and to the global economy.

They discussed China’s transition toward a more sustainable consumption-driven economic growth model, with Obama encouraging Communist country to accelerate its continuing efforts to address industrial excess capacity, foster an environment conducive to innovation and advance an orderly transition to a market-determined exchange rate, the readout said.

Obama also urged China to establish a level playing field for all firms to compete fairly in China.

The two leaders also discussed the importance of achieving progress in negotiation of a US-China Bilateral Investment Treaty and of a World Trade Organization Environment Goods Agreement.

On climate issues, both leaders pledged to continue working toward bringing the Paris agreement into force as early as possible and to reach a market-based measure to reduce international aviation emissions.

The US and China, the world’s biggest polluters, formally joined the Paris Agreement earlier this month.

China and the US together account for nearly 38 per cent of global emissions.

Both leaders also acknowledged the important role their nations play in strengthening the international humanitarian system.

Li will participate in the Refugee Summit Obama is hosting today on the sidelines of the UN General Assembly session.