Chinese Premier Li Qiang said he agreed with Australian Prime Minister Anthony Albanese on Monday to properly manage their nations' differences as they emerge from a hostile era in which minister-to-minister contacts were banned and trade barriers cost Australian exporters up to 20 billion Australian dollars (USD 13 billion) a year.

Li, Albanese and senior ministers of both administrations met at Parliament House to discuss thorny issues, including lingering trade barriers, conflict between their militaries in international waters and China's desire to invest in critical minerals.

Li, China's most senior leader after President Xi Jinping, arrived in the South Australian state capital of Adelaide on Saturday and the national capital of Canberra late Sunday in the first visit to the country by a Chinese premier in seven years.

Li told reporters after Monday's meeting that the bilateral relationship was "on the right track of steady improvement and development."

"We ... Had a candid exchange of views on some differences and disagreements and agreed to properly manage them in a manner befitting our comprehensive strategic partnership," Li said through an interpreter.

Albanese, who in November last year became the first Australian prime minister to visit China since 2016, described the discussions as "constructive."

"Australia advocates that we should all work together to promote a regional balance where no country dominates and no country is dominated," Albanese said.

"I've made it clear as nations with different histories, political systems and values, we will cooperate with China where we can, disagree where we must and engage in the national interest," the Australian leader added.

Their relations have improved markedly since Albanese's center-left Labor Party was elected in 2022 following nine years of conservative government in Australia.