Prime Minister Anthony Albanese met Chinese President Xi Jinping on the sidelines of the G20 summit in Bali on Tuesday.

It marked the end of a six-year diplomatic freeze and the start of better diplomatic relations.

China’s $20 billion trade sanctions on Australia, detention of Australian citizens and relationship with Russia were discussed at the meeting.

The pair also discussed climate change and Albanese urged Mr Xi to maintain the status quo when it comes to Taiwan.

But Albanese said both leaders spoke honestly with each other about these issues.

“We have big differences to manage, but we’re always going to be better off when we have dialogue and are able to talk constructively and respectfully, but also honestly, about what those differences are,” he told reporters in Bali.

“(Australia) will cooperate where we can, disagree where we must and act in the national interest.”

The prime minister said he urged the president to exercise China’s influence on Russia in relation to the war in Ukraine.

But he said it would have been unrealistic to assume there would be solutions to the challenges in the Australia-China relationship in one meeting.

Albanese described the meeting as a first step to moving forward but there were many more to go and there would be further meetings in future.

“It was a warm discussion … I put (Australia’s) position, clearly, firmly, but politely,” he said.

Ahead of the meeting, Xi said he did not want to see difficulties in the China-Australia relationship.

“China and Australia are both important countries in the Asia Pacific region,” he said.

“We should improve, maintain and develop our relationship as it is consistent with the fundamental interests of both countries’ people.”

Opposition Leader Peter Dutton said he hoped the talks would lead to an easing of trade bans placed on Australia.

“There are many other steps in the relationship, so let’s hope that they can proceed, but from our perspective, we want a normalised relationship, but China has made that very hard over recent years,” he told Sky News on Wednesday.

“The purpose of the meeting, obviously, is to advance these issues that are important to our country and in our nation’s best interests.”

While the meeting was the first in years between Australian and Chinese leaders, Dutton said he hoped China would follow up the talks with action.

“China can turn on a dime, that can work both ways, and obviously there’s a charm offensive that’s under way at the moment, and I hope they’re sincere about it,” he said.

Opposition foreign affairs spokesman Simon Birmingham said he hoped there would be breakthroughs on trade disputes.

“We don’t expect instant miracles, but the ultimate test of dialogue will be the outcomes that are received,” he told ABC Radio.

“It is a very good thing that this meeting has happened. Having a dialogue is always far preferable to having a stand off.”