China, Australia agree to hold annual prime ministerial meetings

Premier Li Keqiang and Australian Prime Minister Julia Gillard yesterday agreed to hold annual prime ministerial meetings, as Chinese money drives Australia's huge resource boom.

They held talks at the Great Hall of the People in Beijing, where Gillard was greeted with full military honours.

Australia's economy has gained from Chinese demand for resources including iron ore, and China is now its largest trading partner with two-way business in goods and services worth A$128 billion (HK$1.03 trillion). "Our two sides have decided that the prime ministers will have regular annual meetings either in a bilateral format or on multilateral occasions," Li said, adding that yesterday's talks could be "regarded as the annual meeting mechanism".

Gillard congratulated Li on his selection last month as premier.

"I am filled with optimism about the way we will be able to work together to take the relationship between our two countries forward," she said.