Furthermore, he noted that the two governments need to forge a policy environment that will enable businesses from both nations to conduct mutually beneficial cooperation.

Li Keqiang also said China seeks to continue communication and coordination with Australia on international issues.

Rudd, for his part, said he is optimistic about the future of the Australian-Chinese relationship.

Rudd agreed to develop more contacts at the government level in the future.

He said Australia understands China's long-term demand for resources and energy, and is willing to be a strategic partner with China in this regard.

He also reiterated that Australia adopts an open policy towards investments from China.

Li earlier met with his Australian counterpart, Julia Gillard.

On the issue of the China-Australia Free Trade Agreement, Li noted that the two countries should work to achieve progress in the negotiations so as to create favorable conditions for companies in both countries to cooperate for mutual benefit.

Gillard said Australia is willing to deepen its cooperation with China.

She also stressed that the Australian government respects the sovereignty and territorial integrity of China.

Following the talks, Li Keqiang and Gillard witnessed the signing of a number of cooperation agreements.

They range from telecommunications, forestry, the protection of cultural relics to education.