Defence Minister Robert Hill has held talks in Beijing with China's Minister for National Defence after attending the fourth Asia Security Conference in Singapore.
Senator Hill says the aim of his visit is to discuss further cooperation between the Australian Defence Force and the People's Liberation Army in areas such as counter-terrorism.
However, he says he also raised China's ongoing differences with Taiwan.
"We do urge both China and Taiwan to resolve differences peacefully and of course when I've raised that with my interlocutors here, they have responded that that has always been the wish of China as well," he said.
Senator Hill says Chinese Defence Minister Cao Gangchuan told him China wished for peaceful reunification.
Senator Hill says the security arrangement between Japan and the US, which cited Taiwan as a "strategic priority", was also raised during his meetings "in the sense of querying what the upgrade in that bilateral arrangement means".
China, which is particularly sensitive to what it perceives as outside interference in its dispute with Taiwan, has said it has "grave concerns" about the agreement.
The United States recognises the mainland as China's sole legitimate Government but it is also obliged by law to help Taiwan defend itself