The live firing exercise in international waters near Australia in February, which forced the diversion of commercial flights, was among topics on the agenda during talks between the two leaders in Beijing.
Speaking after Tuesday's meeting, Mr Albanese said he had secured a commitment for China to better inform Australia on military drills in the region.
The prime minister noted the drills being in international waters didn't contravene international law "but that we were concerned about the notice and the way that it happened, including the live fire exercises".
Australia's position on there being no unilateral change to the status quo over Taiwan was also conveyed to the president, he said.
"We want peace and security in the region, that is in the interests of both Australia and China," Mr Albanese replied when asked whether he had raised China's unprecedented military build up.
Mr Xi didn't raise reports the United States had asked Australia to commit to teaming up during a potential conflict with China over Taiwan, nor Labor's commitment to terminate a Chinese company's lease of the Port of Darwin, Mr Albanese added.
The prime minister also raised the detention of Australian writer Yang Hengjun but said he didn't expect immediate progress on the case.
Dr Yang was given a suspended death sentence in China on secretive national security charges that Australia rejects.
"I raised the case, you wouldn't expect there to be an immediate outcome and that is not the way things work," Mr Albanese told reporters.
In his opening remarks ahead of the meeting, Mr Xi hailed improved relations with Australia.
The president was all smiles as he greeted his Australian guest in the East Hall - one of the many ornate chambers in the Great Hall of the People.
"The most important thing we can learn from this is that a commitment to equal treatment, to seeking common ground while sharing differences, pursuing mutually beneficial co-operation, for our countries and peoples," he said.
China's president pointed to past meetings as "in-depth discussions on the strategic overarching issues critical to the direction of China-Australia relations"
"With joint efforts from both sides the China-Australia relationship has recovered from the setback and turned around," Mr Xi said.
Tuesday's bilateral meetings with President Xi, Premier Li Qiang and Communist Party Chairman Zhao Leji - the three highest-ranking members of China's ruling committee - mark the centrepiece of Mr Albanese's six-day tour of the Middle Kingdom.
With China and Australia's comprehensive strategic partnership entering its second decade, Mr Xi said he was ready to push the relationship further to reap greater benefits for both peoples.
The meeting comes as the Chinese-Australian free trade agreement passes its 10th anniversary.
Co-operation between the two nations has increased following a falling out during the COVID-19 pandemic.
An article by a Chinese state media influencer suggested Beijing could restrict Australian imports as retaliation, risking financial blowback for Australian companies.
It comes as Chinese security officials tried to stop Australian journalists, who were travelling with the prime minister's delegation, from leaving a tourist attraction in Beijing after filming in the area.
The group of reporters had permission to film at the location, but were stopped by security officials and were told to hand over footage before police arrived.
The journalists were able to leave the site with the footage, despite being followed by security.
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