China pushes Australia trade ties

Hu stressed Australia's importance as a trade partner

China and Australia have agreed to closer trade and economic ties, after China's President Hu Jintao became the first Asian leader to address the joint houses of Australia's Parliament.

The two countries signed a framework document which could eventually lead to a free trade agreement.

President Hu said the priority was to develop energy and resources projects.

"We want to forge a long-term and stable co-operation partnership," he said.

President Hu also said Australia could play a "constructive role" in reuniting China with the island of Taiwan.

Addressing the Australian parliament, Mr Hu warned that "the greatest threat to peace in the Taiwan Straits is the splittist activities by Taiwan independence forces".

Taiwan, he said, was an "inalienable part" of China and the Chinese Government looked to Australia "for a constructive role in China's peaceful reunification".

Mr Hu was welcomed into the chamber by Australian Prime Minister John Howard, who described the two countries' relationship as mature and practical.

The president's speech came a day after US President George W Bush also delivered an address at the same platform.

Two Australian opposition MPs who heckled Mr Bush were banned from the parliament building during Mr Hu's visit.

Closer ties

Mr Hu's four-day visit has focused on trade and regional security.

He told the parliament China was "ready to be [Australia's] long-term and stable co-operation partner, dedicated to closer co-operation based on equality and mutual benefit".

Mr Hu said a series of trade and economic agreements which he is due to sign with Mr Howard would mark the "beginning" of such co-operation.

The main "framework agreement" establishes a two-year study into a free trade agreement.

Australian Trade Minister Mark Vaile admitted that would probably take around a decade to negotiate if Australia and China decided to pursue it.

But trade analysts said it sent an important political message to Chinese businesses that Beijing approved Australian corporations as trade partners.

China also agreed to a development stake in the Gorgon gas field off north-west Australia, which Mr Vaile said could lead to a AU$30bn (US$20.7bn) liquid natural gas (LNG) supply contract.

China is Australia's third largest trading partner, and the trade between the two nations reached $15bn last year.

In addition to trade, Mr Hu stressed Australia's contribution to regional terrorism. He ignored US President George Bush's recent contentious remarks that Australia is Washington's "sheriff" in the region.

"China and Australia have shared interests in keeping the South Pacific and Asia-Pacific stable, easing regional tensions and promoting peaceful settlement of hotspot issues," Mr Hu told parliament.

"We are both against terrorism and hope for stronger counter-terrorism cooperation," he said.

After his speech, MPs gave Mr Hu a standing ovation.

Outside the parliament building there was a small demonstration by human rights campaigners, including supporters of Tibetan independence and the banned Falun Gong movement.

President Hu will hold private talks with Mr Howard before leaving Australia on Saturday.