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China pushes trade pact as Vice-Premier Li Keqiang visits

The Australian, Canberra

China pushes trade pact as Vice-Premier Li Keqiang visits

By Michael Sainsbury, China correspondent

30 October 2009

China has signalled it wants fast progress on stalled free trade agreement talks with Australia and to use the "unique" relationship between the countries as a model for Beijing’s relations with other countries.

Vice-Foreign Minister He Yafei, who arrived in Sydney last night with Vice-Premier Li Keqiang, was "very confident" an FTA could be reached.

Mr Li’s visit was a "milestone event in our bilateral relationship" designed to advance economic ties, Mr He said.

"The relationship between Australia and China is very unique; we want to build it into a model for relationships between China and other western countries," Mr He said.

"Not to be driven by ideology, not to be driven by single issues but driven by common interests and our more converging interests. That is how to bring the benefits to the people.

"It will be the opportunity for us to advance already very serious economic ties. There have been problems, even disputes between our two countries in the past few months. And that is not good. The key is to respect each other. We are different peoples, different history, different political systems. It is natural from time to time to have differences."

Mr Li arrived in Sydney last night with an entourage of heavy-hitting senior government officials across a range of portfolios and was met by Deputy Prime Minister Julia Gillard.

He will address business leaders in Sydney at lunchtime today before travelling to Canberra to meet Kevin Rudd, attend a state dinner tonight and end his trip in Brisbane. The leaders will sign agreements covering forestry, protection of cultural relics, education and training and telecommunications.

Despite China’s fresh desire to advance an FTA that has been in the making since 2005, Mr He said that both sides needed to make concessions to complete an agreement.

"We also want fast progress on the FTA, we have an FTA with New Zealand but it is a small country," Mr He said in Beijing before flying to Australia.

"Certainly from the political side we are very confident. The negotiating teams on both sides need to take a practical and flexible approach. It has to be a win-win, but for win-win to happen you have to lose something; it has to be compromise, give and take. The political leadership in Beijing is determined - there is no doubt about it - it’s in the interest of both nations."

Mr Li is ranked No7 in China’s nine-man ruling Politburo Standing Committee and widely considered to be the next Chinese Premier, replacing Wen Jiabao in 2012.

It’s significant that Mr Li’s travelling party includes Vice-Minister of Agriculture Wei Chao’an and Deputy Commerce Minister Yi Xiaozhun. The Commerce Ministry is responsible for FTA negotiations, and agriculture has been the sticking point in discussions, which had their last official round last December, despite talks between bureaucrats in Beijing last month.

Despite Mr He’s encouraging words, there is still anger in Beijing at the opaque operations of the Foreign Investment Review Board and at several of its decisions knocking back or putting heavy restrictions on Chinese investments in Australia.


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