The Chinese and Australian national flags in Sydney, Australia.

Healthy, stable relations serve common interests of people from both countries

Australian Prime Minister Anthony Albanese's visit to China has helped restore normal bilateral relations that embarked 50 years ago, after several years of protracted disputes, experts say.

They said the fact his visit took place 50 years after then-Australian prime minister Gough Whitlam's historic trip to China in 1973 should not be understated. The visit of Whitlam, who like Albanese was the Australian Labor Party leader, paved the way for Australia's formal diplomatic recognition of China.

Both Albanese and Chinese President Xi Jinping acknowledged Whitlam's role in laying the foundations for the relationship.

In formally welcoming Albanese to China on Monday, Xi said Whitlam had dug the well of the Australia-China relationship.

"In China, we often say when drinking water, we should not forget those who dug the well," he said. "The Chinese people will not forget prime minister Whitlam for digging the well for us."

The two countries must now embrace the next 50 years, he added. "A healthy and stable China-Australia relationship serves the common interests of our two countries and two peoples."

Colin Mackerras, an Australian Sinologist and professor emeritus at Griffith University in Queensland, said he hopes Albanese's visit will restore the balance between the two countries.

"For me, the people-to-people relationships are just as important, and I think that they may get sold more easily too, because recently there's been some good developments, like for example, in tourism and in educational relations," he said.

Before Labor returned to power under Albanese last year, for the best part of seven years under the Liberal-National Coalition government, political and trade relations between Australia and China had been in decline.

Much of the unease was fanned by right-wing politicians, media and think tanks espousing Cold War rhetoric.

"Over that time, the bilateral and global context has changed significantly," said David Olsson, national president of the Australia China Business Council.

Personal connections

"The one thing that hasn't changed is that bilateral trade, based on the complementarity of our economies and supported by personal connections, has been the anchor and provided the stability needed to navigate uncertain currents and obstacles," Olsson said.

Albanese's visit to China is itself a measure of success, he said, "but more importantly, it lays the groundwork for both nations to look to the future and for Australia's national interests to be advanced through a refreshed strategic engagement with China in the years ahead".

James Laurenceson, director of the Australia-China Relations Institute at the University of Technology Sydney, said the statements released by both heads of state indicate that relations are now back on track.

"Both sides are saying much the same thing, and that is to focus on areas of common interest."

This trip has not just been about Albanese, Laurenceson said. The delegation included Minister for Trade and Tourism Don Farrell and Minister for Foreign Affairs Penny Wong, who had talks with their Chinese counterparts.

Mackerras said the recent decision by the Australian government not to scrap Chinese company Landbridge's 99-year lease on Darwin Port was an important move ahead of the prime minister's China trip.

Leasing the port in 2015 had become a toxic issue politically as it was claimed, without any substance, that leasing the port to a Chinese company posed a security issue.

"The fact that this is now settled is good because it shows trust," Mackerras said.

"China is our most important bilateral relationship, not the US. I think that's very important to understand now and is going to get more important."

Olsson said Albanese's visit to China is "of significance, both diplomatically and economically".

"This meeting demonstrates a firm intent by both leaders to progress a more structured reengagement.

"We need to be realistic in considering the potential outcomes. The path ahead will undoubtedly take some time to navigate and there are real challenges that can't be ignored but the trajectory and the outlook are positive," he said.

China is not just a market, Olsson said, it is also a key supplier and collaboration on innovation.