The Chinese leader will also join a banquet hosted in his honour at Bangabhaban. Prime Minister Sheikh Hasina is expected to join the two presidents at the banquet.
President Xi arrived at Bangabhaban around 6:30pm on Friday, where he was received with bouquets by President Hamid.
The two heads of state then sat for a meeting.
Earlier, arriving in Dhaka in the morning, the Chinese leader in a statement said Bangladesh was an important member among his country's South Asian and Indian Ocean regional partners.
"We are ready to work with the Bangladeshi side to further deepen our political mutual trust and elevate our relations and practical cooperation to a higher level,” Xi said.
Later in the afternoon, Xi and Hasina held a bilateral meeting at the latter's office.
Afterwards, in their presence, the officials of both countries signed 27 deals on cooperation in a number of sectors, among which are coastal disaster management and construction of a Karnaphuli tunnel.
The deals altogether relate to 15 agreements and MoUs and 12 loan and mutual agreements.
Xi and Hasina also unveiled the plaques of six projects at the ceremony.
Both later in a joint statement said that Bangladesh and China had elevated their “closer comprehensive partnership of cooperation” to a “strategic partnership for cooperation.” They agreed on working together on regional and international issues.
The 13-member delegation that Xi is heading has several key ministers, besides leaders of the ruling Communist Party of China.
On Saturday morning, the Chinese president will lay floral wreaths at the National Memorial in Savar before departing for India.