Gillard signals strengthening ties with China

 

Prime Minister Julia Gillard, currently in China for talks with Chinese President Xi Jinping, will today announce two new measures to further strengthen the economic relationship between Australia and China.

The two countries are to implement a currency deal whereby exporters will be able to directly trade the Australian dollar with the yuan.

This measure, which mirrors similar arrangements with the US and Japan, is intended to reduce costs for Australian businesses trading with China.

As the Australian reports, Ms Gillard will describe the deal as "reflecting the rapid growth of our bilateral trade and the value of two-way investment."

The deal comes as business leaders have warned that there is a need to dispel the myth that Chinese investment is unwelcome in Australia. Ms Gillard hope the currency deal will help do this.

In addition to the currency deal, the Prime Minister is to announce the ‘GDay China’ campaign. Similar to the well-established ‘GDay USA’ campaign, the campaign will focus largely on increased tourism but will also aim to mark Australia as a desirable trade and investment partner.  

Speaking on the ABC’s AM program, Ms Gillard said, “The ever-increasing ties we've got more broadly than economies ties. I think that there is every reason to be very optimistic about the way in which we can build for the future.”