China's relations with the countries of the Asia-Pacific region are critically important to the maintenance of regional peace and security. In particular, China's relations with Japan and the United States play a vital role in shaping the security context for the entire region. It is in Australia's national interest to actively encourage and support Chinese participation in dialogue and cooperation on regional security issues. The visit to Australia by Chinese President Jiang Zemin in September 1999 represented an important milestone in Australia's relations with China. The trade and investment relationship between Australia and China is expanding.
China is Australia's fourth-largest merchandise trade partner.
China's entry into the WTO will open up new opportunities for Australia both in terms of greater market access for Australian business and by encouraging China to further integrate into the global economy and abide by international trade rules. The one-China policy will continue to be a fundamental element of the bilateral relationship within which Australia pursues important economic and trade interests with Taiwan. Indonesia Indonesia is undergoing a historic transition to a more democratic, less centralised political system. Australia recognises the significance of this process and the prospect it holds over the longer term for a closer and more broadly based relationship between our two countries. Australia will continue to work steadily to rebuild a constructive relationship with Indonesia that is based on mutual respect, supports improved governance and the growth of democratic institutions, recognises Indonesia's strategic weight in regional affairs, and maximises the mutual benefits from bilateral cooperation in a wide range of practical areas.