Anthony Albanese will meet with Chinese President Xi Jinping in the first formal meeting between the countries' leaders since relations deteriorated two years ago, with hope the talks can lead to the removal of all trade blockages.
The critical one on one talks are set to take place Tuesday afternoon on the sidelines of the G20 Leaders Summit in Bali.
The Prime Minister says there are no preconditions on the conversation, but insists "dialogue is always a good thing" as he attempts to restore goodwill with Australia's largest trading partner.
Beijing put relations on ice in early 2020, after the then-Coalition government called for an independent investigation into the origins of COVID-19, and launched a wave of sanctions on Australian exports worth $20 billion.
Speaking to reporters after arriving in Bali for the summit, Mr Albanese confirmed the first meeting between an Australian prime minister and President Xi in three years.
"Australia will put forward our own position. I look forward to having a constructive discussion with President Xi tomorrow," he said.
"We enter this discussion with goodwill. There are no preconditions on this discussion. I'm looking forward to having constructive dialogue.
"I've said since I became the Prime Minister, but before then as well, that dialogue is always a good thing. We need to talk in order to develop mutual understanding."
Signs of an unthawing emerged earlier this week, when Mr Albanese was seen briefly speaking to China's outgoing premier Li Keqiang, President Xi's number two, at a gala dinner in Cambodia.
Mr Albanese did not answer directly when asked whether he will raise Russia's invasion of Ukraine with his Chinese counterpart, as the international community urges Beijing to pressure Moscow.
"We have a very clear position, and it's a consistent position that there is a need for Russia to withdraw from this aggressive action that is against international law," he said.
US President Joe Biden, who met Mr Albanese in Cambodia on Sunday, is also meeting President Xi while in Bali.
Mr Albanese has also met with G20 host and Indonesian President Joko Widodo, and is scheduled to meet with French President Emmanuel Macron - another leader whose relationship with Australia has recently been strained - new UK Prime Minister Rishi Sunak, and Indian Prime Minister Narendra Modi.
It comes as the Prime Minister enters the midway point of his south east Asian diplomatic mission, just as the world's most influential leaders gather for the G20 Leaders Summit.
Heavy security is evident around the summit zone for the leaders and their motorcades, mixing a tense police display with Bali's renowned relaxed tourism.
Business Council of Australia chief executive Jennifer Westacott is also in Bali for high-level sideline events and has told The Canberra Times the Prime Minister is resetting Australia's international standing.
"He's resetting the importance of our relationship with Indonesia. He is resetting our capacity to work constructively with China. He's resetting our role in the Pacific. He's resetting our leadership on climate and energy transition," she said.
"And I think that for business is giving that sense that of confidence that it will, of course, open up trade and economic opportunities as we see these incredible dynamic economies like Indonesia, that offer tremendous opportunities for Australia, to partner to join on key activities and prosperity of both nations.
"So what I see and what I've seen since the Prime Minister took office, but you're seeing really, at large this week, is this massive reset of Australia's position in the world."
The Business Council has signed a new agreement with Indonesia's peak business group KADIN in a bid to expand trade and other economic opportunities.
An economically damaging pandemic-enflamed trade dispute was sparked by Mr Albanese's predecessor Scott Morrison questioning the origins of COVID-19.
Causing economic pain are $20 billion worth of trading sanctions targeting lucrative Australian exports, such as: wine, barley, cotton, coal, wool and lobster. Everything is in the cooler apart from much needed iron ore and gas, while China-Australia investments have slowed to a crawl and Chinese students are staying away.
The People's Daily has described the G20 as "monumental in China's diplomacy" as it marks the first foreign visit by President Xi since last month's National Congress, where his extraordinary third term as leader was confirmed.
"It's been a very difficult relationship, a very complex relationship, we have to have that principle realism that they are very, very big economy. They're our biggest trading partner," Ms Westacott told The Canberra Times.
"And I think finding a way to navigate that which the Prime Minister looks like is doing is important to the business and sends that signal that we can work constructively with China."
G20 leaders, which represent roughly 80 per cent of the world's GDP, are in Bali to discuss some of the biggest challenges facing the globe, including climate action, the global supply shock and the war in Europe.
Russian President Vladimir Putin was a late no show as his forces were forced to withdraw from Kherson and appear to be on the backfoot across Ukraine. He is to be represented at the G20 by his Foreign Minister Sergey Lavrov and protests, in the form of leader walkouts are on the cards.
Mr Albanese's tour comes ahead of a crunch fortnight on the domestic front, with Mr Albanese looking to push through some of his signature policies in the final parliamentary sitting weeks of 2022.
Labor is being challenged in its attempts to pass a National Anti-Corruption Commission, and over a vote on territory rights.
It also wants its industrial relations legislations, aimed a reforming bargaining rules, through Parliament this year in a bid to kickstart sluggish wages, particularly in feminised, low-pay workforces.