Gillard strikes major deal with China

PM Julia Gillard has signed an unprecedented diplomatic agreement with China's new Premier Li Keqiang.

AUSTRALIA has beaten every country in Asia to lock-in high-level annual meetings with China's leaders as it grows as a world super-power.

After talks with her counterpart in Beijing's Great Hall of the People today, Prime Minister Julia Gillard announced a new ''strategic partnership'' between Australia and China.

The deal has been Australia's top diplomatic priority for the past 13 months and was sealed during a telephone call Ms Gillard made to China's Premier Li Keqiang last month, shortly after he came to power.

In a world where every country wants to boost ties with China, it guarantees Australia's PM, Foreign Minister, Treasurer and Trade Minister formal talks every year with their counterparts, which will increase Australia's hopes to create jobs by cashing in on China's booming economy.

Ms Gillard said it was a landmark deal that gave Australia an edge over other countries.

''When the history of this relationship is written, I think this will be remembered as a day that a big step forward was taken,'' Ms Gillard said after her hour-long talks with Mr Li.

''We have had a very good week for Australia here in China.

The Premier of the People's Republic of China held a ceremonial welcome for Prime Minister Julia Gillard at the Great Hall, Beijing. Picture: Luke Marsden

''Right around the world countries are competing for China's attention...we won't have to compete every time to get to the table, we'll be there at the table working on the issues that deeply matter to both of us.''

China has only granted this special arrangement to three other countries - the United Kingdom, Germany and Russia.

It holds annual talks with the European Union and from time to time there are summits with the United States President.

While the US and New Zealand remain Australia's formal allies in the ANZUS treaty, this deal elevates Australia's relationship with China to the status of ''strategic partnership'' and puts it alongside Indonesia and India.

During the meeting between Ms Gillard and Mr Li, a $1.6 billion deal was signed for Hydro Tasmania and China's Shenhua Group to develop wind farms across Australia.

A $1.5 billion deal was also signed for China Minmetals to develop of Dugald River zinc, lead and silver mine near Cloncurry in Queensland.

Julia Gillard has struck a deal with China to hold annual meetings with top diplomats. Picture: Luke Marsden

Australia and China have also struck a military friendship pact which will involve the 70-member People's Liberation Army band coming to Australia in September for public performances and Australia sending a military band to China.

Australia and China will work together on aid projects in the Asia-Pacific such as fighting malaria in Papua New Guinea and water projects in Cambodia.

Both countries will also create a carbon trading experts group as China moves to have an emissions trading scheme for 255 million people in seven cities including Beijing and Shanghai.

And Chinese tourists with an electronic passport will from 2015 be able to use the faster SmartGate system to get through Customs.

Premier Li is also known as the Prime Minister and oversees economic and governing matters.

The deal with China will also involve foreign and strategic talks between foreign ministers from both countries and an economic dialogue led by Austrtalia's Treasurer and Trade minister and China's powerful chairman of the China National Development and Reform Commisison.

Australia will also enjoy continued access to China's new President Xi Jinping, who has visited Australia three times, and told Ms Gillard he also wanted to have annual meetings. 

Ms Gillard was given an impressive full military welcome on her arrival at the forecourt of the Great Hall of the People and a 19-gun salute.

Mr Li said he wanted to ''raise China- Australia relations to a new height''.

Ms Gillard said she told Mr Li a free trade agreement was a ''gap'' in the relationship and a new round of talks will kick off in May with Trade Minister Craig Emerson.

Dr Emerson said he had a ''high ambition'' for an agreement to be meaningful and not ''just a trophy''.

The PM said she raised human rights concerns, especially in Tibet, and the cases of Australians in jail in China.

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