Howard talks up China trade ties

Howard is in China to press Australia's claims as a reliable energy supplier to President Jiang Zemin

BEIJING, China (CNN) -- The Prime Minister of Australia, John Howard, is talking up trade ties with China during his third visit to the republic as leader.

One of his first tasks during the three-day trip was to sign a deal committing Australian government funds to a high-technology steel mill joint venture with China.

The mill, which will pioneer a new form of steel smelting, will be based in Western Australia and involves mining giant Rio Tinto and China's Shougang Corporation.

"This strategic partnership builds on many commercial links between Australian and Chinese companies over a long number of years, which has seen, for example, the growth of Australian exports to China over the last five years almost double," Howard said Wednesday.

"There is great commitment in Australia to further developing the relationship between our two countries," Howard said.

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He said he hoped the steel project would be seen as a symbol of the "growing and deepening friendship between the people of Australia and the people of China".

Howard earlier met the chairman of China's Parliament Li Peng to push Australia's interests in winning a a multi-billion dollar energy supply contract.

Howard is also calling on Beijing's Mayor Liu Qi, to discuss business opportunities for Australian firms in the city's preparation for the 2008 Olympics.

The Australian city of Sydney hosted the 2000 Summer Olympics.

The Australian leader is also scheduled to meet Chinese leaders President Jiang Zemin and Premier Zhu Rongji.

One of the issues expected to be on the agenda is Australia's desire to be included in the proposed new Asian global groupings being proposed by China and Japan.

Security dialogue

Australia is currently excluded from ASEAN, as well as a proposed Chinese grouping that would include ASEAN plus China, Japan and South Korea.

China is Australia's third largest trading partner and fourth largest, and fastest growing, export market.

Howard has also said he is keen to resume the "security dialogue that used to exist between Australia and China" but had fallen into disuse because of matters relating to Taiwan.

Relations between the two countries have also been strained by Australia's close defense ties with the United States and Australia's support for the Bush administration's "missile defense shield" plans.

"We understand that we have differences but we also respect the fact that if you focus on the things that we have in common you can build a relationship," Howard told reporters earlier Wednesday.