Li calls for closer ties with Australia

China and Australia should deepen cooperation and provide a fair and friendly investment environment for each other's enterprises, Vice-Premier Li Keqiang said on Tuesday.

During a meeting with visiting Australian Foreign Minister Bob Carr, Li called for respect for each other's core interest and proper resolution of differences, saying moving China-Australia ties to a higher stage would contribute to peace, stability and prosperity of the Asia-Pacific region and the world.

Carr, on his first visit to China after taking office in March, reiterated Canberra's commitment to the Australia-China Joint Statement signed in 2009 of strengthening cooperation in various fields.

Carr on Tuesday also launched this year's Australian celebration activities for the 40th anniversary of the establishment of diplomatic relations between Australia and China.

On Monday, he met his Chinese counterpart Yang Jiechi and Wei Fenghe, deputy chief of general staff of the Chinese People's Liberation Army.

Regardless of which party takes power, Canberra always attaches great importance to the development of China-Australia ties, Carr said when addressing the launching ceremony, adding that both sides have made major progress in the fields of trade, defense and education.

Despite the tight fiscal situation, Australia still decided to establish a consulate in Chengdu, capital city of Southwest China's Sichuan province, Carr said.

China is by far Australia's biggest trading partner with two-way trade worth $113 billion representing about 25 percent of Australia's total trade volume, according to official statistics.

In addition to traditional investments in resources and energy, Australia is beginning to see more investment in agriculture and financial services, Carr noted.

The talks between Australia and China about a free trade agreement have picked up pace recently, he added. China has been in talks with Australia about an agreement since 2005, but they remain bogged down over issues such as how to treat agricultural goods.

In March, China's biggest maker of equipment for the telecommunication industry, Huawei, was barred from bidding for a $37.5 billion project in Australia "over security concerns".

Australia has made great profits from exporting mineral and livestock products to China, but both sides have differences over prices and market openness, said Su Hao, an expert on international affairs with China Foreign Affairs University.

"Both countries have to strengthen coordination on pricing based on equality and mutual respect," he added.

Meanwhile, Carr's visit was overshadowed by concerns over Canberra's ties to Washington, with Beijing raising questions over their close military alliance, reports said.