Anthony Albanese has met with Chinese Premier Li Qiang as the two countries aim to ease long-running diplomatic tension.
The prime minister held bilateral talks with China's second-in-command on the sidelines of the East Asia Summit in Jakarta on Thursday.
Mr Albanese said the meeting was important to take the relationship forward between the two countries after a lengthy diplomatic freeze.
"Both sides stand to benefit from improving our relations," he said in opening remarks to the meeting.
"Our relationship has certainly delivered great outcomes for the people of both of our nations.
"The progress we've made in resuming unimpeded trade is good for both countries and we want to see that progress continued."
Mr Li said it was a pleasure to host the Australian prime minister at the meeting, and that Mr Albanese was welcome to visit Beijing "within the year".
The Chinese premier said in opening remarks that there had been positive momentum in the relationship between Australia and China since Mr Albanese met with President Xi Jinping at last year's G20 summit.
The diplomatic talks came after China lifted tariffs on Australian barley, but trade impediments remain on other Australian goods including wine and lobster.
Trade impediments imposed by China have resulted in a more than $20 billion reduction in the value of exports to the Asian nation.
It's estimated $2.5 billion worth of trade blockages still remain on Australian goods into China.
The prime minister flagged the pair would discuss consular matters and geo-strategic issues between the two countries.
"Our views will not always align, we remain committed to our values and interest but we understand that dialogue is absolutely critical," he said.
"A stable and constructive relationship where we can realise the potential of our comprehensive strategic partnership is an interest that we both share."
The meeting with Mr Li came after Mr Xi decided to skip the East Asia Summit, as well as the upcoming G20 summit in New Delhi.
The prime minister had met with Mr Xi at the G20 summit last year, and since then 15 meetings have taken place between Australian ministers and Chinese counterparts.
The bilateral talks coincided with the resumption of Australia-China high-level dialogue in Beijing, the first time the dialogue has been held since 2020.
Former Labor trade minister Craig Emerson and former Liberal foreign minister Julie Bishop attended the session in China on behalf of Australia.
While in Jakarta, Mr Albanese will also hold bilateral talks with Indonesian President Joko Widodo, who is hosting the ASEAN and East Asia Summits.
Both leaders will also take part in the ASEAN-Australia Summit and will co-chair the event.
The East Asia Summit will involve leaders from all 10 ASEAN nations, along with the US, Canada, Japan, New Zealand, South Korea, Russia and India.
Mr Albanese will also be looking to boost trade ties with Southeast Asian nations following the release of a new economic strategy for the region to 2040 on Wednesday.
The strategy, which had 75 recommendations, called for greater investment in the region, with Southeast Asia set to be the world's fourth-largest economy by 2040.
The prime minister will then fly out of Indonesia on Thursday for the Philippines, ahead of bilateral talks with President Ferdinand Marcos Jr, before heading to India for the G20 summit.
© AAP 2023