Australian experts cautiously optimistic over Xi-Obama summit

Around the world, and certainly across Australia, all eyes have turned to an isolated estate in California, the United States, for the so-called "shirt-sleeves" summit between Chinese President Xi Jinpingand his US counterpart Barack Obama.

Australia enjoys a privileged position among the two countries, being a stringent US ally - the only nation to follow the Americans into every foreign war of the 21st century, while also developing a dependence upon China as its most important economic partner.

Dr James Reilly is a lecturer in Northeast Asian Politics at the University of Sydney who sees Australia is more invested than most in the smooth handling of the world's most important bilateral relationship, but must resist the temptation as has been often floated here of influencing either side.

"I think Australia's capacity to be a bridge between the two can be vastly over exaggerated. Yes, it is in Australia's fundamental national interest that they have a stable, constructive relationship - but today both countries have a complex, extremely broad set of institutions that have regular interaction across all levels of government from the very highest on down to the working level," he said.

As the single most important global relationship they have constant discussions and interact a lot --- so the idea that Australia has a role to play here is, to be frank, a little bit of hubris, said Reilly, adding that Australia can certainly feel encouraged, but that's about it.

The massive, 200-acre Sunnylands estate in the Mojave desert, California, will play host to arguably the two most powerful men in the world.

Xi arrived in California earlier this week following a whirlwind trip through Latin America.

The two leaders planned to hold a private meeting in the evening followed by a private working dinner, with their discussions to resume Saturday morning.

Tellingly, President Obama gave a nod to China's challenges and achievements at a Democratic Fund-raiser earlier this week, suggesting that this would be a meeting that sought understanding rather than concrete results.

"The transformation that's taking place in China is extraordinary. And never in the history of humanity have we seen so many people move out of poverty so rapidly... And yet, when you look at the challenges they face and you look at the challenges we face, I'll take our challenges any day of the week," he said.