Anthony Albanese, Xi Jinping share second conversation in Bali

Anthony Albanese, dressed in a batik shirt, spoke informally to the Chinese President and his wife in what was said to be a warm discussion at the G20 gala dinner.

Anthony Albanese had a second conversation with Xi Jinping in Bali on Tuesday night, speaking informally to the Chinese President and his wife Madam Peng Liyuan at the G20 gala dinner after the leaders’ long-awaited bilateral meeting.

The Prime Minister, dressed in a batik shirt, spoke to Mr Xi and Madam Peng for about four minutes in what was said to be a warm discussion.

The conversation will strengthen the personal relationship between the leaders, who had not met before their breakthrough bilateral talks on Tuesday evening AEDT that signalled an improvement in bilateral ties after years of heightened tensions.

Indonesia's President Joko Widodo and his wife Iriana Widodo with Anthony Albanese on Tuesday night. Picture: AFP

Mr Albanese and Mr Xi smiled warmly as they spoke through the President’s interpreter.

Madam Peng, who speaks fluent English and visited Tasmania with Mr Xi in 2014, joined in the conversation.

Hours earlier, Mr Albanese and Mr Xi sat down for the first bilateral meeting between an Australian prime minister and Mr Xi since 2016.

The Prime Minister said the countries “have had our differences”, but it was important to stabilise the bilateral relationship for “mutual benefit”.

Mr Xi said the Australia-China relationship was “worth cherishing” and thanked Mr Albanese for his efforts to handle bilateral relations in a “mature manner”.

Businessman Warwick Smith, a longtime China-watcher and the chair of the Business Council of Australia’s global engagement and security committee, said the goodwill generated by the meeting would open up fresh opportunities for engagement across the board.

China's President Xi Jinping and his wife Peng Liyuan at the gala dinner on Tuesday night. Picture: AFP

“It cascades into all elements of the Chinese bureaucracy, recognising that this is where their leader wants to go,” he said.

Mr Smith said it was likely a high-level ministerial visitor in either direction would occur after new Chinese government appointments were finalised in March.

He said China’s trade bans were unlikely to be lifted immediately or all at once, but a path had been opened up for them to be relaxed.

“All of a sudden you’ll find lobster trade is on again, or some other product. It’ll be a bit here and a bit there,” Mr Smith said.

He said the fate of detained Australian citizens Cheng Lei and Yang Hengjun would also take some time to resolve.