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Sydney - Chinese President Hu Jintao yesterday launched panda diplomacy to further his nation's drive to extend its influence throughout the western Pacific.
During a meeting with Australian Prime Minister John Howard that launched a new annual security summit between the two countries and sealed a range of agreements, on resources and other issues, Hu announced two giant pandas would go to Adelaide Zoo for cooperative research.
Hu made clear that the pandas - the first to be settled in the Southern Hemisphere - carried their own meaning.
"I believe this will certainly become a new symbol of our friendship," he said.
Hu and Howard's meeting on the eve of the Asia-Pacific Economic Cooperation forum's leaders' summit came before tomorrow's joint talks between the Australian leader, United States President George W. Bush and Japanese Prime Minister Shinzo Abe.
The three countries are allied in a security pact that includes the development of America's missile defence shield and which has been regarded by some Chinese and regional analysts as potential muscle for a new policy of containment against Beijing.
Howard's move to open high-level security talks with China was designed to offset these concerns and further Canberra's delicate diplomatic balancing act between its alliance with the US and embracing the region's fast-rising great power.
Hu also met George W. Bush yesterday. Signalling a much bigger role on climate change and in the World Trade Organisation, Hu said he and Howard intended to release a joint statement on climate change.
Howard announced that Australia would pump a further A$20 million ($23.85 million) into the development of clean coal technology under an agreement reached between the two countries earlier this year. The new annual security talks will be similar to those Australia already holds with its major allies, the US and Japan.
Howard said the agreement to begin a strategic dialogue would enable the two countries\ to "regularly traverse all details of this very important relationship".
Hu added: "I hope that with this strategic dialogue mechanism we will be able to fully develop our bilateral relationship and increase our dialogue and cooperation on major regional issues concerning peace and development."
Woodside Energy and PetroChina Company yesterday signed a contract to supply A$35 billion of Australian natural gas among a welter of agreements that covered economic, trade, energy and judicial cooperation. The two countries will also continue high-level official exchanges and visits, expand cultural exchanges and consult on major regional and international issues.
Hu said: "Although China and Australia are different in terms of natural conditions we do share broad common interests. Our relationship has a solid political foundation, profound popular support and huge potential for future growth."
Labor leader Kevin Rudd upstaged Howard by addressing a lunch in honour of Hu in fluent Mandarin.
Liberal strategists have been banking on a boost for Howard following his appearances with world leaders, but Rudd bolstered his own credentials as a statesman. Just hours after his first meeting with Bush, Rudd stunned Chinese speakers by seguing effortlessly from English to Mandarin.
The former diplomat said his daughter had married an Australian-Chinese man, his elder son had studied at Shanghai and his youngest son was studying Chinese at high school. Visiting journalists rated Rudd's accent as perfect.
- additional reporting AAP