Australian Foreign Minister Penny Wong speaks during a news conference during her meeting with Malaysian counterpart Saifuddin Abdullah in Putrajaya, Malaysia, June 28, 2022. Malaysian Ministry of Foreign Affairs/Huzaini Mat Hussin/Handout via REUTERS
Australian Foreign Minister Penny Wong speaks during a news conference during her meeting with Malaysian counterpart Saifuddin Abdullah in Putrajaya, Malaysia, June 28, 2022. Malaysian Ministry of Foreign Affairs/Huzaini Mat Hussin/Handout via REUTERS Reuters / HANDOUT

Australian Foreign Minister Penny Wong said the country's new government wants to stabilise its relationship with Beijing but will make no concessions on national interest when she meets her Chinese counterpart on Friday.

Chinese Foreign Minister Wang Yi will meet Wong on the sidelines of the G20 meeting in Bali on Friday evening, the first meeting between foreign ministers of the major trading partners in three years.

"We all know we have our differences, there are challenges in the relationship. We believe engagement is needed to stabilise the relationship," Wong told reporters in Bali on Friday.

China is Australia's largest trading partner and the biggest customer for its iron ore but relations have deteriorated in recent years.

China imposed trade sanctions on Australian products ranging from coal to seafood and wine in response to policies and decisions such as Canberra's call for an investigation into the origins of COVID-19, its 5G network ban on Huawei, and foreign interference investigations.

Beijing has called for Australia to take "concrete actions" to restart the relationship, without detailing what these would be.

"We won't be making any concessions when it comes to Australia's national interests," Wong said on Friday.

Since being elected in May, Prime Minister Anthony Albanese's government has said it wants China to withdraw the trade measures that it has taken against Australia. Wong has also raised concerns about two Australian journalists detained in China and awaiting verdicts in national security cases.

Chinese foreign ministry spokesman Zhao Lijian told reporters on Friday "a sound and steady China-Australia relationship is in the interests of both peoples".

"A steady and healthy political relationship is the prerequisite and guarantee for practical cooperation. There is no auto-pilot mode for improving China-Australia relations," he said at a regular briefing in Beijing.

The meeting between Australia and China in Bali comes days ahead of a Pacific islands leaders' meeting in Fiji. China's push to extend its security ties in the South Pacific, which is opposed by Australia, will be discussed at the meeting in Fiji.

On Friday, Albanese said the Pacific region was in a period of strategic competition and China had become "more aggressive".

"Australia's position is that we will continue to engage and co-operate, we want to co-operate with China where we can. But we will stand up for Australian values when we must," he told reporters in Sydney.