Chinese President Xi Jinping has noted a "turnaround" in relations between his nation and Australia in a meeting with Prime Minister Anthony Albanese.
Xi and Albanese met on the sidelines of the G20 Leaders' Summit in Rio de Janeiro, Brazil on Monday.
"Over the past decade, we have made some progress in China-Australia relations and also witnessed some twists and turns," Xi told Albanese in their third bilateral meeting.
"That trajectory has many inspirations to offer."
"Now, our relations have realised a turnaround and continue to grow, bringing tangible benefits to our two peoples."
Albanese, whose last meeting with Xi was during his visit to China last year, also acknowledged a repair in ties.
"We've resumed a range of dialogues. And the tempo of bilateral visits is increasing. Trade is flowing more freely to the benefit of both countries," Albanese told Xi.
"Our whole region will benefit from the prosperity that can flow from peace, security and stability in our region.
"That is why our direct discussions to build deeper understanding on the issues that matter to us are so important."
Trade tensions ease but disagreements remain
The diplomatic spat between China and Australia escalated in 2020, when the then-Morrison government called for an independent investigation into the origins of COVID-19.
In response, Chinese authorities introduced $20 billion in including coal, barley, lobster, wine, which it has since begun lifting.
While relations have thawed, some disagreements between Australia and China persist.
China's increasing militarisation in the South China Sea, the AUKUS nuclear submarine deal, and the detention of Australian writer Yang Hengjun remain issues.
A readout of the meeting said the prime minister raised: "Australia's views on issues affecting regional and international peace, stability and prosperity."
"The PM raised a range of bilateral points, including consular matters as well as people-to-people links," the spokesperson added.
Xi has met with a host of world leaders, including US President Joe Biden and UK Prime Minister Sir Keir Starmer, on the margins of the APEC summit in Peru and G20 in Brazil.
Looming large over the global summits has been , with global anxiety on his pledge to impose major tariffs on all imports into the US.
The next G20 Leaders' Summit will be held in China in 2025.
