Gillard visit reflects region's rising status

The multi-faceted results Australian Prime Minister Julia Gillard's visit to China achieved this week indicate the two countries are determined to lift their bilateral ties to a higher, more mutually beneficial and healthier level.

Among the series of agreements Beijing and Canberra signed during Gillard's visit, the most significant is the one on elevating their relationship to a "strategic partnership". In an apparent move to substantiate their strategic partnership based on mutual trust and common prosperity, Premier Li Keqiang and Gillard announced on April 9 that their countries will maintain high-level visits and enhance mutual strategic trust by starting such mechanisms as diplomatic and strategic dialogue and strategic economic dialogue.

Under the new mechanisms, the Chinese premier and Australian prime minister will meet every year, so will the two countries' foreign ministers and heads of economic departments. The Australian media applauded the move as a "leap forward", saying China has similar arrangements only with the United Kingdom, Germany and Russia.

Smooth communication and frequent exchanges at high levels are crucial to the cementing of political ties, because they help deepen mutual understanding and build mutual trust.

For quite some time, political ties have been widely perceived as the lame duck of bilateral relations. Analysts cited the 2009 Stern Hu (or Rio Tinto) case, which plunged bilateral ties to the lowest level in years, to say that Canberra and Beijing lacked an efficient communication channel.

But now, there is a new political architecture between China and Australia, which not only epitomizes the importance both sides attach to improving bilateral ties, but will also help strengthen cooperation in economic and other fields.

During Gillard's visit, the two countries also signed a new currency deal, which allows the use of the Australian dollar and the renminbi in direct trade. In fact, the agreement was put into practice in China on April 10 and will make conversions cheaper and quicker for Australian businesses. Earlier, Beijing has only granted similar status to the US dollar and the yen.