President Xi Jinping told Australian Prime Minister Anthony Albanese on Monday that their countries could become "trusting partners", pledging to work with Canberra on everything from regional security to climate change as the two leaders eased years of tensions that cut billions of US dollars in trade.

Meeting Albanese in Beijing, Xi said the two countries had "no fundamental conflict of interests".

China and Australia, Xi said, could "become mutually trusting and mutually successful partners", according to a readout of the meeting by broadcaster CCTV.

"In the face of major changes in the world, the two sides should grasp the correct development direction for China-Australia relations," he said.

This included cooperation on everything from "the peace and stability of the Asia Pacific region" to climate change, Xi said.

And in opening remarks shown by Australia's public broadcaster ABC, Albanese – the first Australian leader to visit China in more than seven years – hailed the "unquestionably very positive" progress in ties.

Since the two leaders met in Indonesia last year, Albanese told Xi, "trade is flowing more freely to the benefit of both our countries".

"We can of course today take up the opportunity to explore how we can have further cooperation between our two countries," he said.

Albanese has previously acknowledged the need to remain "clear-eyed" about the differences between the two countries.

"We need to cooperate with China where we can, disagree where we must, and engage in our national interest," he told reporters on Monday.

Beijing is Canberra's biggest trading partner, but relations plummeted in 2020 after Australia's then-conservative government barred tech giant Huawei from 5G contracts and called for an inquest into the origins of Covid-19.

Beijing then slapped punitive tariffs on a slew of Australian commodities, including coal, barley and wine.

But China has reversed course since Albanese took power in May last year, lifting most of its restrictions on Australian goods and saying it wants "healthy and stable" ties. (AFP)