Scam compounds have mushroomed along the Thai-Myanmar borderlands, staffed by trafficked foreigners who are forced to swindle their compatriots in an industry analysts say is worth billions.
A number of Chinese citizens have been rescued from the compounds, prompting fears among tourists that they could be kidnapped next.
China is a hugely important market for Thailand as it seeks to rebuild its tourism sector in the wake of the Covid-19 pandemic.
While meeting the Thai prime minister in Beijing, Xi said: "China appreciates the strong measures taken by Thailand to combat online gambling and phone and online scams", state broadcaster CCTV reported.
"The two sides must continue to strengthen cooperation in security, law enforcement and judicial cooperation" in order to "protect people's lives and property", Xi added.
As the pair met, 61 people rescued from scam centres in Myanmar were returned to Thailand, defence ministry spokesman Thanathip Sawangsang told AFP.
"There are about 34 Chinese. The rest come from Indonesia, Ethiopia and other countries in Africa," he said.
Paetongtarn sought to assure Xi that "the safety of people and tourists who visit Thailand is the government's highest priority", according to a statement from her office.
"Thailand is ready to boost cooperation with China to tackle crimes passing through Thailand and to systematically warn about possible threats," she said.
Bangkok has described the scam centres as a "national security issue".
On Wednesday, Thai authorities cut off the electricity supply to five areas in Myanmar where fraud centres are allegedly located.
In January, Chinese actor Wang Xing was reportedly rescued from a cyberfraud centre in Myanmar.
After his high-profile alleged kidnapping, the number of Chinese tourists visiting Thailand during the Lunar New Year holiday sharply declined in comparison to previous years.
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