In a significant demonstration of improving relations between Australia and China, Prime Minister Anthony Albanese made the first visit by an Australian leader to China in seven years. The meeting between Albanese and Chinese President Xi Jinping was largely ceremonial but reflected the positive direction that relations between the two countries have taken after years of strife and division. Both leaders acknowledged the gradual improvement in ties over the past year and emphasized the importance of engaging with each other despite differences on issues such as defense.

China, being a major market for Australia, has lifted some trade restrictions on Australian products since the leaders first met in November 2022. This has resulted in freer trade between the two countries, benefitting both economies. Although China had levied tariffs and unofficial trade barriers on Australian exports such as coal, wine, beef, barley, and lobsters, those barriers have significantly reduced, with estimates suggesting they now cost about $2 billion Australian dollars ($1.3 billion) annually. Furthermore, China has expressed its intention to lift the punishing tariffs on Australian wine that had severely impacted the industry.

During the meeting, the leaders engaged in light-hearted banter about pandas and Tasmanian devils. While Albanese asserted Australia's pre-eminence in quality red wine, Xi compared the cuteness of pandas to Tasmanian devils, using the Kung Fu Panda movie as a reference. This exchange reflected the warmth and cordiality between the two leaders. Albanese also raised the case of Yang Hengjun, an Australian democracy blogger, who has been detained in China for almost five years. Although it is unclear how Xi responded, China did release Australian journalist Cheng Lei last month after three years in detention on charges of espionage, a case that had heightened tensions between the two countries.

Despite the positive tone of the visit, Australia is still pursuing a security partnership with the United Kingdom and the United States, which China perceives as an attempt to counter its influence in the region. However, Albanese underscored the importance of high-level dialogue and people-to-people links in resolving differences and fostering understanding. Albanese's visit to China coincided with the 50th anniversary of the first trip by an Australian prime minister to the People's Republic of China. This visit holds significant importance as it not only builds on the past but also ushers in a future of continued engagement between the two nations.