Premier Li Keqiang said China and Australia should work towards increasing mutual understanding and trust, properly handle differences and bring bilateral relations back to the normal track.

Li made the remarks as he held talks with Australian Prime Minister Scot Morrison on Sunday for the China-Australia Annual Leaders' Meeting, which took place in the middle of the leaders' meetings on East Asian cooperation in Bangkok on Sunday.

A healthy and stable relationship between China and Australia will not only bring about benefits to both peoples but also helps with regional and international stability and development, he said.

There are not historical issues or fundamental conflict of interests between the two countries, and both should see each other's development as opportunities, he said.

He also called on both sides to focus on common interests and conduct constructive exchanges and cooperation under the principles of mutual respect and equality.

The cooperation between China and Australia does not harm or target third parties, nor should it be affected by third parties, said the premier.

It is even more important for the two countries, as important economic and trade partners to each other, to jointly cope with the downward pressure of the global economy, he said.

China stands ready to enhance exchanges and cooperation in areas including trade, energy, finance, education and coping with the climate, Li said, adding that he hopes the two nations can meet each other half and promote the healthy and stable development of bilateral relations.

Morrison said China's development was a miracle in the human history, and the country's success in lifting hundreds of millions out of poverty was admirable.

Australia attaches great importance to relations with China, and it is committed to moving the relationship forward, he said.

As a sovereign nation, there is no need for Australia to take a side between relations with China or with the United States, he said, adding that bilateral relationship is by no means a transaction.

Instead, China and Australia, as comprehensive strategic partners, share broad common interests in bilateral areas and global issues, he said.

Australia looks forward to resuming exchanges and cooperation with China in various areas as soon as possible, he added.