Ambassador Xiao Qian also said Australian and Chinese negotiators in Geneva were discussing whether Australia could drop complaints at the World Trade Organisation on Chinese tariffs on wine and barley and resolve them bilaterally, which he said would be "a good idea".

"As we improve our relationship, as we develop our relationship, we'll come back to a normal kind of relationship," Xiao told reporters following a speech in Canberra.

Diplomatic relations between Canberra and Beijing are easing after several years of strain, and the Australian government is watching to see if China, its largest trading partner, lifts unofficial trade blockages on a dozen Australian exports.

China's state planner this week allowed three central government-backed utilities and its top steelmaker to resume coal imports from Australia, lifting an unofficial ban in place since 2020 after Canberra called for an investigation into COVID-19's origins.

Australia has two complaints at the World Trade Organisation against dumping tariffs imposed by China on Australian wine and barley.

On other products, the resumption of trade depended on decisions by Chinese companies, although the Chinese government would "remind" companies through statements and notifications, Xiao said.

"We did that when we had a bad relationship. We have to tell our companies we are having some problems with this country politically, you have to be careful ... and when we have an improvement in relations we also notify our companies and the people in China," he said.

(Reporting by Kirsty Needham and Lewis Jackson; Editing by Raju Gopalakrishnan)