It is the first visit by a Chinese premier since 2017 and follows several years of strained relations between the two countries, culminating in costly sanctions on some Australian exports including wine.
Political ties worsened in the wake of Chinese expansionism in the South China Sea and a number of military confrontations.
In an incident in international waters off the coast of North Korea last month, an Australian naval helicopter was forced to take evasive action after a Chinese military jet detonated flares nearby.
Anthony Albanese, the Australian PM, branded the episode as “dangerous” and demanded that such behaviour should not happen again.
Nations ‘back on track’
Beijing’s criticism of the AUKUS deal between. Britain, the United States and Australia, has also dampened relations.
During his visit, Mr Li declared that the two nations were now “back on track after a period of twists and turns”.
“A more mature, stable and fruitful comprehensive strategic partnership will be as treasure shared by the people of both countries,” he added.