Anthony Albanese and Xi Jinping greet each other in Bali on Tuesday night.

Anthony Albanese and Xi Jinping greet each other in Bali on Tuesday night.Credit:James Brickwood

Albanese emerged from the meeting on the sidelines of the G20 summit in Bali to say he used the meeting to express Australia’s concerns on trade,Taiwan,human rights in Xinjiang,climate change and the detention of Australian citizens in China.

With Russia using its membership of the G20 to block a unified message from the summit about the war in Ukraine,Albanese urged Xi to use his influence with Russian President Vladimir Putin to end the conflict and remove the threat of tactical nuclear weapons.

“Australia seeks a stable relationship with China. We have big differences to manage,but we’re always going to be better off when we have dialogue and we are able to talk constructively and respectfully,but also honestly,about what those differences are,” Albanese said.

“And we were able to do that this afternoon. I think both countries took an important step to moving forward. There are many steps,of course,that we are yet to take.”

Speaking after the first meeting with Xi and an Australian prime minister since 2016,Albanese said he expected the talks to lead to further dialogue with China,but he played down the prospect of swift change on trade or other fronts.

“It was a very constructive discussion,is how I would put it – Australia’s position is very clear. I put the position clearly,firmly,but politely. And that is what I intended to do,and that’s what I did.”

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Xi used his opening remarks in the 30-minute meeting to tell Albanese it was in the “fundamental interests” of both countries to develop their relationship,reflecting their status as important countries in the Asia-Pacific region.

“In the past few years the China-Australia relationship has had some difficulties,” the Chinese president said,in an unofficial translation. “This is something we would not like to see.

Anthony Albanese,right,at a bilateral meeting with Xi Jinping.

Anthony Albanese,right,at a bilateral meeting with Xi Jinping.Credit:James Brickwood

“Since you assumed the leadership,you have talked about China-Australia relations on various occasions and expressed multiple times that you would handle China-Australia relations in a mature manner. I attach great importance to your opinion.”

According to a summary of the meeting released later in the day by Chinese government-controlled media service Xinhua,Xi also said:“China attaches importance to Australia’s recent willingness to improve and develop bilateral relations.”

Xi said Australia and China had “highly complementary economic structures” reflecting China’s demand for Australia’s natural resources and called for the Australian government to open up further to Chinese business investment after a series of multi-million dollar deals were scuppered by the Foreign Investment Review Board.

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“The potential for economic and trade cooperation between the two sides is huge,and it is hoped that the Australian side will provide a good business environment for Chinese enterprises to invest and operate in Australia,” he said.

Xi did not raise the AUKUS alliance on nuclear-powered submarines between Australia,the United Kingdom and the United States,although China has objected to the agreement.

Albanese urged restraint on thetreatment of Taiwan,after Beijing launched military drills around the island in August,and called for the continuation of the status quo.

On human rights,the prime minister raised thetreatment of ethnic minorities in Xinjiang and the detention of Australian journalist Cheng Lei and Australian author Yang Hengjun in China.

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Albanese said both sides had worked to “stabilise the relationship” ahead of the 50th anniversary of diplomatic relations between the two countries,an event that comes next month.

“When former Labor prime minister Gough Whitlam established diplomatic relations between Australia and the People’s Republic of China in 1972,we agreed on principles to guide the relationship based on equality,mutual respect and benefit and a commitment to coexist peacefully,” he told Xi.

“And these principles remain important today.”

Albanese used the meeting to call for Xi to lift trade sanctions on Australian goods,arguing it was in both nations’ interests for Beijing to scraprestrictions on imported Australian coal,beef,barley,lobster and wine.

Beijing cut off all high-level contact with Australia almost three years ago,with Chinese ministers refusing to take calls from their Australian counterparts as retribution for the Morrison government’s public calls for an internationalinvestigation into the origins of the COVID-19 pandemic.

That nadir followed years of increased tensions,as Australia rankled Beijing by passing legislation to crack down on foreign interference andban Chinese telecommunications giant Huawei from the nation’s 5G network.

Albanese’s meeting with Xi preceded a packed series of meetings in Bali with world leaders including new British Prime Minister Rishi Sunak,French President Emmanuel Macron,Indian Prime Minister Narendra Modi and Canadian Prime Minister Justin Trudeau.

Trade is set to be top of the agenda for Albanese,as the government races tofinalise free trade agreements with the United Kingdom and India by the end of the month and the European Union by early next year.

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Business leaders and foreign policy experts welcomed the meeting while warning they did not expect any major policy changes in the near term.

“The meeting is certainly positive,but I wouldn’t attach expectations for short-term relief,” said Wine&Grape Australia chief Lee McLean.

“Having said that,if we can re-normalise the relationship,it could open up opportunities in the future.”

Wine exports to China were down 92 per cent to $21 million in the year to the end of September,according to Wine Australia.

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Australian Strategic Policy Institute chief Justin Bassi said the fact that Xi had finally sought a meeting was a sign Australia’s foreign and defence policy was getting results.

“Beijing now accepts that engagement is in its longer-term interest because Australia has proven more resilient than Beijing previously judged,” said Bassi,previously a senior adviser in the Coalition government.

“The meeting is unlikely to result in immediate outcomes such as the removal of trade restrictions,but that’s not the point of the meeting. For Prime Minister Albanese,it shows that he and Australia can engage with all countries in the national and regional interest and that tensions can be managed,not ignored.”

Former ambassador and national security chief Dennis Richardson said it would be “totally unrealistic” to expect trade restrictions to be lifted soon but said further talks between trade officials was a realistic goal.

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“There is some adjustment in terms of the ‘wolf warrior’ diplomacy,” he said,using the popular term for China’s sometimes aggressive language against other countries.

“However,I don’t think their fundamental global and regional outlook has changed.”

Richardson,a former director-general of the Australian Security Intelligence Organisation and ambassador to the US,said there were lasting differences between Australia and China on issues like territorial claims in the South China Sea and Chinese ambitions in the Pacific.

Strategic Analysis Australia chief Michael Shoebridge said Xi might set up leverage from the meeting by threatening Australia in the future with another “deep freeze” in the event of friction over Chinese ambitions in the Solomon Islands and the Pacific.

“What Xi wants out of this meeting is a quieter international environment so he can deal with a bunch of domestic challenges including the economic slowdown,” he said.

“But I also think he wants to be able to get on with business strategically,such as in the South Pacific.”

The talks came a day afterBiden held a three-hour meeting with Xi that canvassed China’s military drills around Taiwan in August,its treatment of people in Tibet and Xinjiang,its response to protests in Hong Kong and its detention of foreign citizens.

With Eryk Bagshaw

Cut through the noise of federal politics with news,views and expert analysis from Jacqueline Maley. Subscribers can sign up to our weeklyInside Politics newsletter here.

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