The Chinese leader made the comments during a telephone discussion with Gordon Brown, the British prime minister.
But Beijing has also expressed concern about Brown's plans to meet the Dalai Lama when he visits the UK.
"We are of the opinion that the Tibet conflict is a topic, which politics and diplomacy must resolve." Andreas Meurer, Volkswagen spokesman, said.
Uwe Kleinert, German spokesman for Coca-Cola, said the company was hopeful that the games would have a positive impact on the host nation.
"It would surely be inappropriate to comment as a sponsor of many years of the International Olympic Committee on the political procedures in a country," he said.
"But as a senior sponsor of the Olympic movement, we are convinced the games can make a positive contribution by bringing cultural and social advantages to the host country."
Officials unmoved
Meanwhile, a senior Beijing Olympics official said that last week's anti-government riots in the Tibetan capital, Lhasa, and the subsequent crackdown by Chinese authorities, would not disrupt plans for the upcoming Olympic torch relay.
One leg of the high profile relay passes through Tibet, taking the flame to the peak of Mount Everest, sometime in May this year.
"We know the incidents are the last thing we want to see, but we firmly believe that the government of the Tibet autonomous region will be able to ensure the stability of Lhasa and Tibet, and also be able to ensure the smooth going of the torch relay in Tibet." Jiang Xiaoyu, executive vice-president of the Beijing organising committee, said.
Many athletes are also concerned at the incidents occurring in Tibet.
"To be going into a country that has massive rioting and death going on, that's definitely something to be paying attention to and be concerned about," Michelle Engelsman, an Australian swimmer who competed in Athens 2004, said.