Australia's bilateral relations with China are currently at their most constructive since formal diplomatic relations were established in 1972. Prime Minister Howard's visit to China in March 1997 made significant progress on security and human rights issues and my visit presents an opportunity to further develop the bilateral relationship. A key objective will be to build on the already substantial dialogue established between the two Governments. Australia and China can make to maintaining regional stability. Ways to advance our bilateral trade relationship with China will also be on the agenda.
China is Australia's fifth largest merchandise trade partner and our seventh largest export market.
My visit to Hong Kong takes place at a time of economic and political challenge for the Special Administrative Region, which recently celebrated the second anniversary of its return to Chinese sovereignty. Hong Kong is an important base for Australia's business interests in China and the region. It is our eighth largest export market and third largest source of foreign investment. Some 45,000 Australians live and work in Hong Kong. I will be underlining Australia's continuing high-level commitment to the bilateral relationship through my meetings with the Acting Chief Executive Anson Chan, the newly appointed Convener of the Executive Council C Y Leung, the Acting Chief Justice Ching, and the business community.