In his first major speech since taking up the posting, Liu Jinsong said diplomatic ties with Australia was advancing across a range of areas.
"Under the strategic guidance of our leaders, China and Australia relations have returned to a right track of stable and sound development," he told an Australia China Business Council event at Parliament House on Thursday.
"Treating each other as equals is the cornerstone of our engagement."
Mr Liu took up the diplomatic position in August, following a thawing of ties between Australia and its largest trading partner.
Billions of dollars worth of tariffs were placed on Australian goods such as beef, wine and seafood by China in a trade war following the COVID pandemic.
The tariffs were gradually eased following the 2022 election.
Mr Liu said while tensions between the two countries had eased, there would always be stumbling blocks in the relationship.
"It's perfectly normal to have differences. It would be unrealistic to expect none," he said.
"What matters is how to manage differences rationally, smartly and, importantly, to grow our bilateral relationship.
"Co-operation is not about moulding each other into the same shape. It's about making the shared cake bigger, while managing differences appropriately. We must never allow disagreements to define our bilateral relationship."
Prime Minister Anthony Albanese is set to meet with Chinese President Xi Jinping for the fifth time during the APEC summit, which is being hosted in Shenzen in November.
Mr Liu said respect between the partners needed to flow both ways.
"As the Chinese scene grows, courtesy demands reciprocity. Australia speaks of the fair go. Both (countries) express the same core value: mutual respect," he said.
"Australia values its agriculture and food exports to China. China is concerned with the interest of Chinese companies in Australia.
"Only when we hold our own and our partners's core interest and concern in equal regard can dialogue be meaningful."
Mr Liu raised eyebrows when he started the ambassador role by saying he travelled by bus from Sydney to Canberra.
He confirmed in the speech he travelled via a Murrays coach, a perennial favourite of Canberra commuters, but the length of time commuting was not among the strong points.
"Three and a half hours, my God," he said.
"You know the same distance (between) Beijing and Tianjin, only 35 minutes by bullet train."
20°C