Chinese-Australian links are improving after a turnaround in relations, President Xi Jinping has told Prime Minister Anthony Albanese while acknowledging “some twists and turns” in the past.

Mr Albanese met the Chinese president, in their third formal encounter, on the sidelines of the G20 Leaders’ Summit in Brazil.

Before the talks between the two started in Rio de Janeiro overnight, Mr Xi recalled visiting Australia in 2014.

“Ten years ago today, I was on a state visit in Australia. And on this very day, during which our two sides agreed to establish a comprehensive strategic partnership,” Mr Xi said.

Mr Xi addressed the parliament in Canberra at the time and was hosted by then-prime minister Tony Abbott .

“And over the past decade, we have made some progress in China-Australia relations and also witnessed some twists and turns. That trajectory has many inspirations to offer,” Mr Xi told Mr Albanese.

“Now, our relations have realised a turnaround and continues to grow, bringing tangible benefits to our two peoples,” he said.

“So, this is the result of our collective hard work in the same direction, and should be maintained with great care.”

Mr Albanese, who visited Beijing a year ago, said there had been “further encouraging progress in the stabilisation of our relationship” and that trade was “flowing more freely” between the countries.

China is Australia’s largest trading partner and total two-way trade hit a record $327 billion in 2023.

Chinese authorities introduced sanctions – since lifted – on some Australian products in 2020 after the government of then-prime minister Scott Morrison called for an international inquiry into the COVID-19 pandemic.

“We continue to explore opportunities for practical co-operation in areas of shared interest, including on our energy transition and climate change,” Mr Albanese said on Tuesday.

“We live in the fastest growing region of the world in human history – and the rise of China has contributed to this while lifting the living standards of hundreds of millions of people through increased economic activity”.