A defence ministry statement said the small training maneuvers "Exercise Panda-Kangaroo 2017" were the first joint drills the two countries have held in China.
Ten soldiers from each country's army participated in the exercise, which lasted 10 days and ended yesterday, according to the official Xinhua news agency.
The training in Yunnan province included mountainous marches, moving through natural obstacles and field survival.
Australia and China do over $100 billion in trade annually, but Australia is also an important US military ally at a time when Beijing expands its global influence.
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