Australia, China sign deals Worth $ 8.8 billion

AUSTRALIA: Australia and China Monday signed new deals worth 10 billion dollars (8.8 billion US), mostly in resources and energy, after talks between Prime Minister Kevin Rudd and Vice President Xi Jinping.

Rudd said the 10 agreements reflected the strong and growing cooperation between his country and its top trading partner, a key consumer of Australian raw materials.

“This demonstrates the dynamic relations between the two countries in this sector, and the strong complementarity of the two economies,” Rudd said in a statement after meeting China’s heir apparent in Canberra.

“The agreements will also see upgrades to infrastructure and will deliver jobs and regional development.”

Xi, who is tipped to succeed President Hu Jintao in the next two years, is the first high-level Chinese official to visit Australia since the jailing of Rio Tinto executive Stern Hu in Shanghai in March.

Analysts said he would use the five-day trip to voice concerns about Australia’s proposed 40 percent tax on mining profits, a move that has stoked concerns about the costs of the resources China needs for its development.

One of the agreements, a 1.2 billion US dollar deal between Karara Mining Ltd, China Development Bank Corporation and the Bank of China will see the development of port and rail infrastructure in Western Australia. Others support the development and expansion of coal and iron ore mining projects in the resource-rich Pilbara coast of Western Australia.

Sydney, Monday, AFP