Anthony Albanese chats with Xi on G20 sidelines

Anthony Albanese followed up his breakthrough bilateral meeting with Xi Jinping with a second conversation on the sidelines of the G20 meeting in Bali.

Anthony Albanese meets Chinese President Xi Jinping in Bali on Tuesday. Picture: Twitter

Anthony Albanese followed up his breakthrough bilateral meeting with Xi Jinping with a second conversation on the sidelines of the G20 meeting in Bali, speaking informally with the Chinese President and his wife, Madam Peng Liyuan, at the summit’s gala dinner.

The Prime Minister engaged Mr Xi and Madam Peng for about four minutes in what was said to be a warm discussion, just hours after they sat down for the first meeting in six years between an Australian prime minister and the Chinese leader.

Mr Albanese and Mr Xi — both wearing Indonesian batik shirts — smiled as they spoke through the President’s interpreter, building on the “goodwill” forged in their formal talks.

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

The exchange will strengthen the personal relationship between the leaders, who had not met before their official meeting on Tuesday evening AEDT that signalled a long-awaited improvement in bilateral ties after years of heightened tensions.

Chinese state-run media said on Wednesday that the “most difficult time for China-Australia relations has passed”. But it said improving the bilateral relationship would require the Albanese government to be more welcoming of Chinese investment.

“Only if Australia gives Chinese companies fair treatment can the country promote efficient and mutually beneficial trade and economic co-operation with China,” the Global Times said.

Businessman Warwick Smith, a longtime China-watcher and the chairman 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.

“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 visit in either direction would occur after new Chinese government appointments were finalised in March.

He predicted the gradual rejuvenation of the 2014 comprehensive strategic partnership between the countries.

China’s trade bans on $20bn in Australian exports were unlikely to be lifted swiftly, but a path had been opened up for them to be relaxed, Mr Smith said.

“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.”

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

In their official bilateral talks, Mr Albanese told Mr Xi their 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” while raising China’s longstanding unhappiness with investment hurdles for Chinese businesses in Australia.

“It is hoped that the Australian side will provide a good business environment for Chinese enterprises to invest and operate in Australia,” Mr Xi told the Prime Minister, according to China’s official broadcaster CCTV.

The Turnbull government raised hurdles for Chinese investment in Australia’s infrastructure and was the first government in the world to ban Chinese giant Huawei from its 5G network.

Mr Albanese told Mr Xi it was important to stabilise the bilateral relationship for “mutual benefit”.

He also called for China to show restraint on Taiwan, and registered concerns over human rights abuses in Xinjiang.