In the 3rd Foreign and Strategic Dialogue between Australia and China in Beijing, Australian Foreign Minister Julie Bishop held what she described as a ‘candid’ exchange of views over security issues.
The Beijing meeting was held amid increasing tensions in the South and East China Sea. The latest development saw both Taiwan and the US accuse China of deploying missiles to one of the disputed islands.
It is a claim Foreign Minister Wang Yi rejected as attempts to discredit China.
Minister Julie Bishop came to Beijing equipped with a tough message on regional security to deliver to Australia's closest trading partner.
“We had a candid exchange of views on these issues,” she told the joint press conference after the official talks.
“China and Australia share an interest in the maintenance of peace and stability in our region and in that context we also discussed opportunities for more joint initiatives in the area of aid and development.”
Chinese actions in the South and East China Sea continues to impact on its global reputation.
Chinese Foreign Minister Wang Yi dismissed the latest news reports.
"This is something that we were just being told several minutes ago that there are reports like that and we believe that this is an attempt by certain western media to create new stories," he said.
Over the last 12 to 18 months, reclamation and construction has turned disputed atolls into Chinese airfields, ports and military bases.
Canberra based Defence expert Peter Jennings from the Australian Strategic Policy Institute told SBS there are regional tensions that impact on ties.
“I think there are an increasing number of strategic issues which are of concern between the two countries, in particular China's aggressive actions claiming sovereignty in the South China Sea,” Mr Jennings said.
In Beijing, Ms Bishop reaffirmed Australia's position that it won't take sides but is urging the peaceful resolution of disputes.
"We have an interest in maintaining peace and security in the South China Sea, as does China and the other claimants. We urge restraint."
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China 'sends missiles' to contested island
For Australia, managing its relationship with China is a delicate balancing act. Australia supports the call by the United States for freedom of navigation in the South and East China Sea, but its criticism of Chinese actions in recent months has been more muted.
The Australian Government is still to decide if it will join US freedom of navigation naval movements in the disputed seas.
Analyst Peter Jennings believes Australia should join the US action.
"Our government has been saying almost for a year now that it's considering what its position is and I think sooner or later the consideration needs to stop and we need to demonstrate out interests in freedom of navigation by sending a ship through the region," he said.
These talks between China and Australia also focus on economic ties. The Free Trade Agreement with China came into force in December last year.
The parties are also preparing for a planned visit to Beijing by Australian Prime Minister Malcolm Turnbull.
