After visiting Laos, Bangladesh and New Zealand, Chinese vice-president Xi Jinping is expected to end his four-nation regional tour with a bang when he arrives in Australia at the weekend.
There is speculation in Canberra that Mr Xi, the likely successor to president Hu Jintao in 2012-13, will join Kevin Rudd, Australia’s prime minister, to announce a large long-term resources deal early next week.
Agreeing a lucrative contract would be welcome for Mr Rudd who is under intense pressure from Australian and international mining groups over his plans to slug the sector with a new 40 per cent super profits tax. Mr Xi’s visit also demonstrates improved relations between Canberra and Beijing after a string of diplomatic headaches, including the jail sentences of four former China-based Rio Tinto employees.
But business between the two nations has never been stronger, with the value of Australia’s trade with China, its biggest two-way trading partner, set to top A$100bn as early as this year.
Mr Xi has been spreading gold dust elsewhere in the region too.
In New Zealand today, he was at hand with John Key, prime minister, when the local unit of ANZ Bank signed a cooperation agreement with China Development Bank to work on projects that will promote trade and investment flows between the two nations.
Earlier on his trip, Mr Xi witnessed the signing of more than a dozen agreements with Laos covering trade, technology, construction and finance.
If Mr Xi does indeed become China’s next president, he’ll already have plenty of friends to call on.
Stefan Wagstyl
Josh Noble
Rob Minto
Pan Kwan Yuk
Jonathan Wheatley
Heba Saleh