Australian Prime Minister Malcolm Turnbull hails China trade ties on visit

Australian Prime Minister Malcolm Turnbull hailed trade ties with China but skirted sensitive political issues on the first day of his visit to his country's key trade partner.

In a speech on Thursday in the financial hub of Shanghai, Turnbull praised a bilateral free trade agreement signed last year as offering important new opportunities for Australian exporters.

China absorbs about one-third of Australia's exports and China's slowing demand for iron ore, coal and other resources has taken a major toll on Australia's economy.

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Two-way trade between them totalled 150 billion Australian dollars ($115 billion) in the last financial year, down 6.3%.

Turbull made no mention of close-US ally Australia's concerns about Chinese activities, that were recently criticised in an Australian government report, in the South China Sea.