U.S. President Barack Obama welcomed Tibet's Dalai Lama to a prayer breakfast in Washington DC on Thursday, calling him a "good friend," in the first public appearance together of the two leaders.

Obama said the exiled spiritual leader of Tibet is a "powerful example" of practicing compassion for others, but he is deemed a separatist by China.

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The U.S. president added the Dalai Lama inspired people to stand up for the dignity and freedom of all human beings, in a speech delivered before thousands in the breakfast event.

It is the first time both Nobel peace winners have been spotted together without an effort to conceal the occasion.

Three previous meetings between the two were behind closed doors to avoid angering China.

During Thursday's event, the Dalai Lama and Obama gestured to each other across the ballroom. The Buddhist leader, wearing his usual maroon clothes, did not sit at the head table but he was a short distance away.

He was clasping his hands together, bowing and making a peace sign as hosts mentioned him. Obama also clasped his hands in response.

On Friday, Beijing lodged a protest in Washington over the Dalai Lama's presence. China's foreign ministry said Obama was using the issue over the freedom of the Himalayan region for his own political ends, but the statement fell short of announcing any clear diplomatic action.

Foreign Ministry spokesman Hong Lei said the Dalai Lama is a political exile working to throw out Chinese rule over Tibet in the guise of religion.

Hong said Beijing opposed any other nation's decision to let the Dalai visit and resist any interference in China's internal politics by getting involved in the Tibet issue.

Chinese officials usually call the Dalai Lama only as "Dalai" because Beijing does not recognize his religious legitimacy. China insists Tibet has been a territory for more than seven centuries while many Tibetans see themselves an independent country.

China has denied the Dalai Lama's mission for Tibetan autonomy as Beijing sees it as a push for independence.