Gillard welcomes China's new leader

Prime Minister Julia Gillard has welcomed the transition of the Chinese leadership to Xi Jinping. Source: AAP

PRIME Minister Julia Gillard has welcomed the transition of the Chinese leadership to Xi Jinping.

Xi, who is expected to be confirmed as president in March, has become general secretary of the Communist Party and head of the commission that oversees the military.

The former Chinese vice-president for the past five years visited Australia two years ago.

A spokesman for Ms Gillard told AAP on Thursday the government congratulated Mr Xi on his appointment at the 18th congress of the Communist Party of China as party general secretary.

"General secretary Xi Jinping is well known to Australia and we look forward to working closely with him in his new leadership role to deepen and enhance bilateral relations and to strengthen our engagement on a broad range of shared regional and global challenges," he said.

"Australia is committed to a positive, comprehensive, constructive and cooperative relationship with China, now and into the future."

Foreign Minister Bob Carr said the new Chinese leader had visited Australia, had a good knowledge of Australia and appreciated the nation's importance to China.

"We would see an opportunity to engage with the new leadership," he told ABC television on Thursday.

Senator Carr said there was potential for a negotiated settlement over disputed territories in the South China Sea.

"I think with the leadership confirmed and the new leadership taking root there's hope to believe China will take a realistic and forceful attitude, but an attitude that leads towards a negotiated settlement," he said.

Diplomatic talks are under way on a code of conduct for managing the regional dispute.

Having met with US Secretary of State Hillary Clinton in Perth this week, Senator Carr said he believed China was "comfortable" with Australia's defence ties with the United States.

"Our position is we'd like more transparency about (China's military), but we recognise China as a great economic power will seek to modernise and diversify its military," he said.

"At the same time, China must acknowledge that Australia ... will want to tend to its security concerns and will do so, as we have for 60 years, by cultivating, by nurturing a security treaty with the United States.

"That doesn't require us to choose between China and the US. Indeed I'd say China, deep down, is comfortable with knowing Australia is defining itself in this way. They know where we stand."

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