Anthony Albanese and Chinese President Xi Jinping have arrived for their meeting on the sidelines of the G20 in Bali.

The bilateral talks are the first between Xi and an Australian prime minister in six years and come at a time when the relationship between the countries is at a bitter low.

The pair smiled as they shook hands in front of cameras.

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https://twitter.com/AlboMP/status/1592436720733388801

Xi addressed the meeting first. A translation of his remarks was not immediately available.

Albanese acknowledged the countries "have had our differences" but said he was hopeful of "a constructive exchange and dialogue today".

"I am very pleased that we are having this meeting here today," Albanese said.

"It comes at a time of great global uncertainty. We're facing challenges of COVID and the recovery, dealing with climate change, and also supply chain shocks. As we manage these challenges, we need to work towards a stable, prosperous and peaceful Indo-Pacific, and an international system that is governed by international law and the principles that are enshrined in the United Nations charter.

"We have had our differences, and Australia won't resolve from our interests or our values, but our bilateral relationship is an important one. Both sides have worked to stabilise the relationship based upon mutual respect and mutual benefit."

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Albanese reflected on the 50-year milestone of diplomatic relations between the two countries, first established by former Labor prime minister Gough Whitlam in 1972.

"We agreed (in 1972) on principles to guide the relationship based on equality, mutual respect and benefit, and a commitment to co-exist peacefully, and these principles remain important today," Albanese said.

"President Xi, I look forward to a constructive exchange and dialogue today. I thank you."

Ahead of the meeting, Albanese had been cautiously optimistic about what he hoped to achieve.

"Having the meeting is a successful outcome," he said on Monday night.

"Because for six years, we have not had any dialogue. And it is not in Australia's interest to not have dialogue with our major trading partners.

"So, having the meeting, there are no preconditions for the meeting."