Beijing: China has said it wants to be Australia's partner, not its rival, in building infrastructure in the Pacific, offering "trilateral cooperation" after Australia announced its own $3 billion infrastructure fund to stand alongside China's massive Belt and Road Initiative.

A warm meeting between foreign affairs minister Marise Payne and her Chinese counterpart Wang Yi in Beijing has reset the bilateral relationship, Mr Wang saying the pair had reached "an important common understanding" that China and Australia have different strengths in the Pacific.

A warm encounter between Australian Foreign Minister Marise Payne and Chinese Foreign Minister Wang Yi in Beijing. Credit:DFAT

"Australia and China are not competitors, not rivals but co-operation partners and we have agreed to combine and capitalise on our respective strengths to carry out trilateral cooperation involving Pacific island states," he said.

Mr Wang did not mention the Belt and Road Initiative in his comments, but said the Pacific cooperation could become a new highlight in the Australia-China relationship.