Chinese ambassador Xiao Qian says Australia ties improving ahead of possible Beijing visit

It comes months after Prime Minister Anthony Albanese was issued an invite to Beijing which, if accepted, would mark the first visit by an Australian prime minister since 2016.

While a date has not been set, Chinese officials remain hopeful the invitation to the Chinese capital will be taken up before the end of the year.

However, a number of issues remain on the table for both sides, casting doubts over the visit.

It's understood the Chinese side wants to see a quick resolution to a review into the Port of Darwin and a dialling down of the negative rhetoric against Chinese companies, including social media app TikTok, and technology providers, DJI and Hikvision.

Chinese ambassador Xiao Qian, in Canberra on Thursday, said the strategic partnership between the two countries, which has been strained for nearly five years, is "witnessing stabilisation, improvement, consolidation and development".

"We hope and believe that defence and military ties between our two countries will also achieve positive progress," he said in his speech to guests attending the embassy's celebration of the 96th anniversary of the People's Liberation Army.

Mr Xiao also said his nation was ready to work with Australia to "step up dialogue and communication at all levels and in all areas".

The top envoy said the two sides should respect each other's core interests and accommodate each other's major concerns.

"China's defence policy is open and transparent," Mr Xiao said, adding differences should be managed in a constructive manner.

Mr Xiao did not take questions from the media on the record.

Trade between the two countries has been slowly stabilising after Australia was hit with a number of export sanctions under the former Coalition government.

Trade Minister Don Farrell also held talks with Chinese counterpart Wang Wentao in May to lift the ban on billions of dollars of Australian export products, including barley, wine and lobster.

China resumed the importation of Australian timber shortly after the minister's return.

While trade relations have slowly been improving, Australian officials remain concerned with China's growing influence in the Indo-Pacific region.

China and the Solomon Islands entered into a policing arrangement in July, adding Chinese police to Australia and New Zealand's contingent of 1500 officers.

Mr Albanese and New Zealand Prime Minister Chris Hipkins in a joint statement on Wednesday expressed concern over the move by Solomon Islands Prime Minister Manasseh Sogavare.

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"Prime ministers expressed concern that the implementation of the new policing agreement between China and Solomon Islands would undermine the Pacific's agreed regional security norms, including a 'family first' approach to peace and security," the statement said.

"The agreement is inconsistent with Pacific Islands Forum leaders' commitments and the approach the forum has taken on regional security matters.

"Leaders agreed it would be important for the Pacific Islands Forum to discuss these issues and encourage transparency, enabling the region to collectively consider the implications for our shared security."