Upgraded China-Australia ties to create more opportunities for Asia-Pacific

China and Australia's decision to lift ties to a comprehensive strategic partnership and their conclusion of free trade agreement (FTA) talks will not just benefit themselves but also create great opportunities for the Asia-Pacific region. [Special coverage]

The breakthroughs were made during Chinese President Xi Jinping's ongoing state visit to Australia.

China, the second largest economy in the world, and Australia, the world's No. 12, are both giants of the Asia-Pacific region politically, economically and geographically.

Despite their different political systems, stages of development and cultural traditions, the pair are highly complementary in energy, resources, finance, infrastructure and agriculture.

China is now Australia's largest trading partner, export market and source of imports, while Australia is China's eighth largest trading partner and an important source of raw resources.

Bilateral trade has expanded 1,500-fold since the two forged formal diplomatic relations in 1972. Two-way trade reached 136.4 billion U.S. dollars in 2013, up 11.5 percent year on year.

A smooth flow of materials and products between the two countries will facilitate the economic growth of the whole region and be conducive to trade, connectivity and cooperation of other Asia-Pacific economic entities.

According to the results of the nine-year-long FTA talks, Australia will eventually remove tariffs on all goods imported from China, and a vast majority of Australian products will enter China tariff-free.

In addition, the two sides agreed to grant each other the most favored nation status once the FTA takes effect, which will greatly lower the review thresholds for corporate investment and increase market access opportunities, predictability and transparency for such investment.

The two sides also committed themselves to opening up numerous service sectors to each other with high quality.

The FTA will cover more than 10 areas, including trade in goods and services, investment and trade rules, as well as such subjects as e-commerce and government procurement.

On the military front, China expressed readiness to strengthen bilateral defense cooperation with Australia through high-level visits, joint drills and defense consultations to safeguard regional peace and stability. Australia agreed to strengthen cooperation with China in defense affairs and justice and law enforcement.

China supports Australia in integrating itself into Asia and stands ready to increase communication and coordination with Australia under such multilateral mechanisms as the United Nations, the Group of Twenty, the East Asia Summit and the Pacific Islands Forum.

The two sides also agreed to enhance cooperation in global economic governance and counter-terrorism and jointly push forward the Free Trade Area of the Asia-Pacific process.

Australia offered to take measures to simplify the visa procedures for Chinese citizens and encourage the people-to-people, cultural and educational exchanges.

With China deepening domestic reforms and opening wider to the outside world and Australia speeding up its economic restructuring and industrial upgrading, their fruitful cooperation will create great opportunities for other economies in the Asia-Pacific to take a free ride on the fast-running train of development.

As Xi told Asia-Pacific leaders in Beijing last week, everyone here is responsible to make the Pacific the true ocean of peace, friendship and collaboration.