China bristled when the agreement to deploy Marines to the northern city of Darwin was first announced by President Barack Obama in 2011.
But after signing the deal at the Australia-United States Ministerial Consultations (AUSMIN) in Sydney, US Secretary of State John Kerry said Washington was not interested in conflict with the Asian powerhouse.
"We welcome the rise of China as a global partner, hopefully as a powerful economy, as a full participating constructive member of the international community," he said.
Australia's Foreign Minister Julie Bishop earlier defended the deal to bring US Marines and Air Force personnel to the Northern Territory, denying it was aimed at China which is embroiled in maritime disputes with neighbours.
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"That's not what it is directed to do at all. It's about working closely with the United States to ensure that we can work on regional peace and security," she told a radio programme.
After the talks Bishop, who also hosted US Defense Secretary Chuck Hagel, said the discussions were broad - ranging from tensions on the Korean peninsula to the crisis in Ukraine and to conflicts in Syria, Iraq, Gaza and Afghanistan.
The threat of foreign jihadist militants fighting in these conflicts and then returning home radicalised was also explored. The US and Australia agreed to raise the issue at the United Nations.
Kerry said this problem, highlighted by images in local media of the seven-year-old son of an Australian jihadist in Syria holding a severed head, underscored the degree to which Islamic State fighters were "so far beyond the pale".
"It's no accident that every country in the region is opposed to ISIL (Islamic State of Iraq and the Levant)."
Bishop made no comment about the prospect of an increased US military presence beyond the Marines, some 1,200 of whom are already in the country.