2007 will mark the 35th anniversary of diplomatic relations between China and Australia.

Since the commencement of diplomatic relations, the bilateral relationship has broadened and deepened considerably. This has been apparent in the number of high-level visits we continue to have in both directions. In 2006, Premier Wen Jiabao visited Australia and, in turn hosted Australian Prime Minister John Howard when he came to China to receive the first commercial shipment of Australian Liquefied Natural Gas at the Dapeng terminal in Guangdong province. Our long-term minerals and energy partnership continues to be the bedrock of our economic relationship.

This relationship has been further broadened and strengthened by the signing, during Premier Wen's visit to Australia in April 2006, of bilateral treaties on nuclear transfers and nuclear cooperation which may pave the way to future uranium exports to China to help it to meet its energy needs in a way that does not increase global greenhouse gas emissions.

China is now Australia's second largest trading partner. It is our second largest export destination as well as the second largest source of our imports. Negotiations on our bilateral free trade agreement continued throughout 2006, with the commencement of discussions on market access in December. We expect to work hard in 2007 towards a truly liberalising agreement that will provide a comprehensive framework for a significant expansion of the trade and economic relationship, particularly in relation to closer cooperation between our agriculture and services industries.

Our people-to-people exchanges continue to strengthen and expand. Australia expects to receive over 300,000 visitors from China by the end of 2006, which is an 11 per cent increase over 2005. It remains our largest source of overseas students with over 61,000 Chinese students in 2006, joining more than 350,000 international students from over 100 countries studying in Australia.

Against this background, Australia and China can look forward to continuing their happy and prosperous partnership in the 35th anniversary year of diplomatic relations.

Alan Thomas

Australian Ambassador to China