Trade Minister Don Farrell is returning from a two-day trip to China without concessions from Beijing on a raft of trade bans against Australian exports, but says there is "positive momentum" in the countries' relationship.
Senator Farrell said he and Chinese counterpart Wang Wentao agreed during high-level talks on Friday night to "step up dialogue" to resolve the trade issues.
He said Mr Wang had agreed to visit him in South Australia to build on their discussions.
Senator Farrell said he also raised the plight of Australians Cheng Lei and Yang Henjung, who have been detained by China for years over alleged espionage offences amid frozen bilateral relations.
In a late night press conference, he said Mr Wang reassured him that a recent agreement "remains on track" to end Chinese sanctions that killed off Australia's $1.2 billion-a-year worth of barley exports to the country.
"I also reiterated that we expect a similar process to be followed with the WTO dispute in respect to Australian wine," Senator Farrell said.
He said the discussions were positive and followed "a whole lot of movement" already, with Australian coal and copper already coming back into the Chinese market, and a pathway to resolving the barley dispute.
Mr Wang raised China's hoped-for entry into the trans-Pacific free-trade deal but Senator Wong said it was too soon to consider the country's application as the UK's accession to the agreement was still pending.
Chinese investments overwhelmingly accepted
Senator Farrell said Mr Wang had raised China's concerns over its companies' ability to invest in Australia.
The move follows Treasurer Jim Chalmers's recent rejection of a Chinese company's push to lift its stake in a key lithium development.
But Senator Farrell said Chinese investment applications were overwhelmingly accepted, and "like all countries, we reserve the right to make strategic decisions about foreign investment, particularly where they involve state-owned companies".
He said he had also agreed to send agricultural officials to China to help sort out biosecurity concerns over Chinese electric cars that had been blocked from entry into Australia.
Senator Farrell was also asked about a reported upcoming visit to Australia by Chinese Foreign Minister Qin Gang, which he appeared to confirm at the opening of his meeting with Mr Wang.
The South Australian Senator said he was responding to a media report, but "if he comes to Australia, he would be most welcome to come to Adelaide".
His comments followed a story in the South China Morning Post revealing Mr Qin's expected trip, which is yet to be formally announced by Beijing.
Senator Farrell pushed back at suggestions he was returning home from China empty handed, describing the trip as a "first step".
"More work needs to be done. And I always thought that we would have to continue to persist and to persevere," he said.
Mr Wang said earlier that China had "noted" Australia's concerns over trade issues, and that improving the bilateral partnership would require a "joint effort".
He said China was also concerned that its businesses and products "be treated fairly and justly" by Australia.
China slapped punishing tariffs on Australian exports including barley, beef, wine, lobster, coal and timber, after the Morrison government called for an inquiry into the origins of COVID-19.
China recently agreed to review the barley bans in response to the suspension of a World Trade Organisation challenge by Australia, setting a course for the sanctions on the commodity to be lifted, together with those on wine.
