China and Australia on Wednesday agreed to strengthen their relations in a meeting between Chinese President Hu Jintao and Australian Prime Minister Julia Gillard.

Speaking highly of the "pragmatic, friendly and reciprocal" policies which Gillard has pursued toward China since she took office in September 2010, Hu said the two sides should make sure that bilateral relations continue on a sound and stable track. "The two sides should respect each other, enhance political mutual trust and appropriately handle sensitive issues," Hu said.

Gillard said Australia abides by the one-China policy and views its relationship with China as one of its most important international relationships. She also said Australia attaches high importance to the further development of bilateral ties.

On the economic front, Hu said the two countries should fully display their complementary advantages and turn extraordinary potentials of cooperation into substantial benefits of cooperation.

Gillard echoed Hu in saying that the new agreements that the two countries signed during her visit would provide opportunities for the further development of bilateral ties.

Australia will join hands with China to grasp these opportunities and boost bilateral relations to new highs, she said.

During her first China visit, the prime minister witnessed the signing of five cooperative agreements between the two countries, which range from science and technology to tourism.

President Hu also called on the two countries to strengthen dialogue and cooperation within a multilateral framework.

The two sides should strengthen communication and coordination on regional and international issues concerning the G20 mechanism and global challenges, and make joint efforts for peace, stability and development in the Asia-Pacific region and the world as a whole, Hu said.

Prior to the meeting, Gillard held talks with Chinese Premier Wen Jiabao and attended the China-Australia Economic and Trade Cooperation Forum together with Chinese Vice Premier Li Keqiang. She is scheduled to end her four-day official visit in China on Thursday.