Prime Minister Anthony Albanese says he spoke to the Chinese Premier about a recent "incident of concern for Australia" in the South China Sea, framing the discussion as one between friends.
Albanese met with Chinese Premier Li Qiang on the sidelines of the Association of Southeast Asian Nations (ASEAN) forum in Malaysia on Monday.
The meeting in Kuala Lumpur follows an incident last week where the Chinese military deployed flares near an Australian military aircraft in the South China Sea for the second time this year.
Following the conversation with Li, Albanese said his approach was to "engage directly".
"I'm a straight guy, I talk to leaders the way that I talk to the Australians; straight, clear, unambiguous but in a positive way, so that where there are differences, I talk about that, but always bearing in mind what is in Australia's national interest," he said.
"This is a relationship that has improved. That is stabilising.
"It's a relationship that's important for Australian jobs. It's as simple as that.
"I've said repeatedly we must cooperate where we can, disagree where we must, but engage in our national interests."
The incident in international airspace over the South China Sea was made public by Defence Minister Richard Marles last Monday.
An RAAF aircraft was carrying out a routine patrol on Sunday 19 October when the People's Liberation Army jet flew alongside it, and twice released flares "very close" to the Australian plane.
Experts told SBS the metal casing from from flare could have caused engine failure or even a crash had it struck the aircraft.
Despite the matter being raised, Li welcomed "upward momentum" in the relationship between Australia and his country.
In their conversation, he called on Australia to deepen cooperation as a defence against global instability, while Albanese said the two countries needed to navigate any differences that may arise wisely.
Speaking through an interpreter, Li said Albanese’s visit to Beijing in July had received "a lot of attention and acclaim".
"It has injected fresh impetus to the continued growth of our bilateral relationship," he said.
"I saw many of your ministers and governors have also visited China. Indeed, we are seeing an upward momentum in our relationship, and we welcome it, and we are happy to see it."
Li said Australia’s commitment to building a constructive and stable relationship with China was especially important given growing global instability.
"China stands ready to maintain strategic communication with Australia to further expand our cooperation for mutual benefit and work together toward a more mature, stable and fruitful China-Australia comprehensive strategic partnership to better benefit our two peoples and contribute even more to global peace, stability and development," he said.
Albanese said he welcomed "the continued tempo which continues to rise" as a result of recent high-level engagements.
The prime minister also noted he enjoyed his visit to Beijing in July, describing it as an important step in the Australia-China relationship.
"As you say, we both wish to see more mature, stable and constructive engagement," Albanese said.
"That has flowed not just from leader to leader, but from ministerial visits, including just in the last month, our climate change ministers being engaged as well."
