Chinese President Xi Jinping has described relations with Australia as having faced "twists and turns" in recent years, urging Prime Minister Anthony Albanese to take "great care" to maintain the improved partnership.
The two leaders met at Mr Xi's hotel on the sidelines of a G20 meeting of the world's largest economies in Rio de Janeiro, Brazil.
"Over the past decade, we have made some progress in China-Australia relations and also witnessed some twists and turns," Mr Xi told Mr Albanese in opening remarks broadcast via a translator.
Relations between the two countries soured under the former Coalition government.
China took issue with Australian foreign interference laws, the AUKUS alliance and calls for an inquiry into the origins of COVID-19.
Mr Xi's government slapped crippling tariffs on select Australian imports, which proved devastating for wine, beef, barley and rock lobster exporters.
"Trade is flowing more freely to the benefit of both countries and to people and businesses on both sides," Mr Albanese told Mr Xi in his opening remarks.
The meeting happened mere minutes after Mr Xi met with British Prime Minister Keir Starmer.
The Australia-China meeting lasted around 30 minutes.
Mr Xi's delegation dwarfed that of Mr Albanese.
The men sat opposite each other at tables with purple orchids in between.
Mr Albanese later told reporters he raised the plight of Australian academic, Yang Hengjun who is facing a suspended death sentence in China.
The prime minister also said while he hasn't had formal talks with leaders about Trump's return to the White House, it had featured in informal talks with leaders.
He also raised Australia's support for Ukraine and China's supply of "assets" to help Russia.
Behind the scenes, Australia, the US and like-minded countries are advocating for the G20 final statement to offer a condemnation of the invasion in Ukraine but that's increasingly looking unlikely, with Russia and China's leaders opposed.
Mr Albanese said he raised sticking points that exist in the relationship with China, including cyber threats, threats on Taiwan and tests of intercontinental ballistic missiles.
"We raised issues that matter," he told reporters.
When pressed whether China could be trusted for its sudden opposition to trade tariffs, Mr Albanese said Australia had long supported free trade and he wouldn't offer a running commentary on other leaders.
The meeting also marked a decade to the day since Australia and China signed a comprehensive strategic partnership while Mr Xi visited Australia.
"That trajectory has many inspirations to offer. Now, our relations have realised a turnaround and continues to grow, bringing tangible benefits to our two peoples," Mr Xi said.
"So, this is the result of our collective hard work in the same direction, and should be maintained with great care."
It's the third time Mr Albanese and Mr Xi have met, first doing so at a G20 meeting in Bali in 2022. That meeting was seen as the beginning of the thawing of relations between the countries.
"I wish to work with you, Mr prime minister, to make our comprehensive strategic partnership more mature, stable and fruitful and inject more stability and certainty to the region and the wider world," Mr Xi told Mr Albanese in Rio.
Despite the improved relations, issues still remain between the two countries, including Chinese military action in the South China Sea, the imprisonment of Australian writer Yang Hengjun and the AUKUS military pact with the United States and United Kingdom.
Mr Xi is spending a week in South America and has met privately with the leaders of the United States, New Zealand, Japan, Brazil, Peru, Chile, South Korea and Singapore.
Mr Albanese also used the first day of the G20 talks to meet with British Prime Minister Keir Stamer and the head of the EU, Ursula von der Leyen.
Incoming US President Donald Trump has loomed large over the G20, like he did at last week's APEC meeting of Pacific-rim nations in Lima.
Mr Xi has used his time in South America to try and stitch together a coalition of free trade advocates that could rebuff Trump's threats to spark a trade war with China.
He urged Mr Albanese to stand against protectionism and champion free trade. That's something Australian prime ministers from both sides of the political aisle have long championed, even in the face of the trade barriers Mr Xi slapped on Australia in 2020.
Mr Xi invited the prime minister to visit Beijing for the annual leaders' talks next year.
A spokesperson for the prime minister described the meeting as a "stocktake" of the progress to restore trade and engagement between Australia and China.
"The PM raised a range of bilateral points, including consular matters as well as people to people links," the spokesperson said.
Chinese state media has reported that Mr Xi urged Mr Albanese to provide non-discriminatory access for businesses seeking to tap into Australia's economy.
