MELBOURNE – In a productive meeting on Monday, Australian Prime Minister Anthony Albanese engaged with Chinese Premier Li Qiang, addressing Australia’s critical-minerals agreement with the United States and recent aggressive actions by a Chinese military aircraft.

The discussion between Albanese and China’s second-highest official took place in Kuala Lumpur, Malaysia, during the Association of Southeast Asian Nations summit.

Albanese described this encounter, his seventh with Li, as another “positive meeting,” reflecting on the evolving dynamics between the two nations.

“The relationship is seeing significant improvement and is on a path toward stabilization,” Albanese commented to the press.

Since the election of Albanese’s center-left administration in 2022, China has begun lifting several trade restrictions, both formal and informal. These barriers, initially set in 2020 when Beijing halted direct ministerial dialogues, had previously inflicted an annual loss of up to $13 billion on Australian exporters.

Albanese said he and Li had discussed the Australian leader’s visit to the U.S. last week during which he and U.S. President Donald Trump signed a $8.5 billion critical minerals deal.

The U.S. is eyeing Australia’s rich rare earth resources at a time when China is imposing tougher rules on exporting its own critical minerals abroad.

“We talked about the relationship with the U.S. I clearly have indicated the success of my visit to the United States and we talked in a common way about that it was a good thing that President Trump and President Xi (Jinping) are having a meeting over the next little period,” Albanese said.

Albanese did not directly answer when a reporter asked if Li had expressed an opinion on the U.S.-Australia minerals pact.

China’s Xinhua news agency reported Li told Albanese China hoped Australia will provide an open, transparent and non-discriminatory environment for Chinese enterprises to invest and operate in the country.

China was also willing to cooperate with Australia on the green economy, high-tech industries and the digital sector, Li said.

Australia shares U.S. concerns over China’s global dominance in critical minerals and control over supply chains in the renewable energy sector.

Last year, the Australian government ordered five China-linked companies to divest their shares in the rare earth mining company Northern Minerals, citing Australia’s national interests.

Australia’s foreign investment rules also prevent Chinese ownership of critical infrastructure.

Albanese said he had also raised with Li the behavior of a Chinese fighter jet during a confrontation with an Australian air force surveillance plane in international air space over the South China Sea on Oct. 19.

The Chinese Su-35 jet twice released flares “very close” to the Australian P-8 Poseidon aircraft, Australian Defense Minister Richard Marles said last week.

Australia officially protested what the government described as the Chinese air crew’s unsafe and unprofessional behavior.

Senior Col. Li Jianjian, a Chinese military spokesperson, accused the Australian aircraft of illegally entering the airspace of China’s Xisha Islands without Beijing’s approval.

“The actions of the Australian side seriously violated China’s sovereignty and could easily trigger unexpected maritime or aerial incidents. We sternly warn Australia to immediately cease its infringement and provocation,” the officer said in a statement last week.

Albanese said he told the premier “this was an incident of concern for Australia.”

“We have disagreements and friends are able to discuss issues frankly. I did that directly,” Albanese said.

Li “heard the message very directly. I’m not here to report in on … what people say when I have meetings,” Albanese added.

In July, Albanese said he complained about the Chinese military to President Xi Jinping during a bilateral meeting in Beijing. A Chinese flotilla had conducted a naval live-fire exercise off the Australian coast that forced commercial aircraft to change course in February.

The mission was widely regarded as a display of the Chinese military’s growing strength.

Albanese said he had raised with Li at a meeting in Australia last year recent clashes between the two countries’ militaries in the South China Sea and Yellow Sea that Australia argued endangered Australian personnel.