'Clearly, firmly, but politely': Albanese ends diplomatic deep freeze with China at G20 breakthrough

But the Chinese leader, now confirmed in an extraordinary third-year term, has insisted the two countries should "change, maintain, and develop" ties, nearly three years after their relationship deteriorated.

Mr Albanese ended the diplomatic deep freeze with China with a 32-minute meeting on Tuesday night on the sidelines of the G20 Leaders' Summit in Bali - the first formal face-to-face meeting between an Australian leader and a Chinese counterpart in half a decade.

"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," he told reporters in Bali.

"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."

Both sides warmly characterised the meeting, in which President Xi Jinping was urged to remove $20 billion worth of sanctions on Australian goods.

The Prime Minister declared the door is now open for further dialogue between the two nations, but he said it was not a "commercial" discussion and blockages in the relationship with Australia's largest trading partner will take time and discussion.

"The system doesn't work that way," Mr Albanese told reporters in Bali. "And 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'm intended to do. And that is what I did."

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Mr Albanese said he raised issues including human rights concerns in Xinjiang for the Muslim minority Uyghur population and the lengthy detention of Australian citizens Cheng Lei and Yang Hengjun, known as Yang Jun.

He said he also put forward Australia's position on Ukraine and said he asked President Xi that China exercise its influence on Russia, "specifically about Russia's threats to us tactical nuclear weapons".

"I noted that China had called that out, and that that is a good thing," Mr Albanese said.

"I asked that China use its influence on Russia. That I pointed out that the war in Ukraine was having an impact on the global economy and directly having an impact, which it is, on the Australian energy crisis and inflation."

He did not detail the Chinese response to this overture, and he set a diplomatic tone with G20 member Russia set to block plans for a strong leaders' communique at the end of the summit about the war.

"The communique is being worked on. And I expect that it will be released appropriately, and you'll also get to see it at the same time," he stated.

In remarks ahead of the meeting, President Xi stated relations with Australia had "always been at the forefront" of China's outlook and should be "cherished".

"In the past few years, the China-Australia relationship has [had] some difficulties," he conceded.

"This is something that we would not like to see. Since China and Australia are two important countries in the Asia-Pacific region. We should change, maintain and develop our relationship.

"This is in the fundamental interests of the people from both countries."

The Prime Minister also raised concerns over the thorny issue of Taiwan and support for no change to the status quo.

And he raised climate change and "the need for us to work together".

"I referred to the floods that are occurring in New South Wales, that climate change is a global issue and it requires a global response," Mr Albanese told reporters.

Mr Albanese said the Chinese leader did not raise the tripartite nuclear subs deal under the AUKUS alliance, and also rejected any suggestion the meeting ended early, insisting at 32 minutes long, it had in fact run over time.