Australia and China elevates relationship to strategic partnership
Following the visit of Australian PM to China in April 2013 ,Australia and China have agreed to elevate their relationship to the level of “strategic partnership” — a level of engagement Australia shares with few countries, including India and Indonesia.
They also agreed to considerably expand defence ties including holding three-way defence exercises with the United States and holding a “policy-level” dialogue to boost trust between their militaries, in addition to their standing military-to-military dialogue. The decision comes after Australia’s close ties with the U.S. became irritant in ties with China. Also the agreement last year to host 2,500 U.S. marines in Darwin didn't go well with chinese who saw it as aimed at Beijing.
They also signed a landmark agreement to directly trade in their currencies — China has similar arrangements only with the U.S. and Japan — and agreed $3 billion worth of investment deals, which are set to further boost the sizeable $120 billion bilateral trade that has propelled resource-hungry China to become Australia's biggest trading partner.