China hailed mended ties with Australia on Monday, saying relations were "on the right track" as the trading partners moved on from a bitter economic dispute despite a duel for influence in the Pacific.

Chinese Premier Li Qiang arrived to a grand ceremonial welcome at Parliament House in Canberra, before talks with Australian Prime Minister Anthony Albanese.

The highest-ranking Chinese official to visit since 2017, Li said his trip to Australia demonstrated "that this relationship is on the right track of steady improvement and development."