A meeting between Mr Yang and Australian Foreign Minister Stephen Smith would incorporate 'the inaugural strategic dialogue' between the two countries, Mr Smith said in a statement.

'The strategic dialogue is a new and important pillar in our expanding bilateral ties with China and reflects the significance of the relationship to the two countries.'

The ministers would 'exchange views on their respective strategic outlooks, particularly in the Asia-Pacific region, and consider key global issues and emerging challenges', Mr Smith said.

'We will explore opportunities for bilateral consultation as we shape our contributions to regional peace and security.'

Australian Prime Minister Kevin Rudd, who ousted former leader John Howard in November elections, is a Chinese-speaking former diplomat who has made clear his aim of strengthening ties with Beijing.

Plans for a 'strategic dialogue' were, however, first announced by Mr Howard and Chinese President Hu Jintao on the sidelines of a meeting of Asia-Pacific leaders in Sydney in September.

The announcement came as Australia prepared to hold its first trilateral security talks with Japan and the United States.

Beijing and Canberra share a strong trade relationship, with China's hunger for raw materials to feed its rapidly-growing economy helping fuel a mining boom in Australia.

Two-way trade between the two countries was worth some 50 billion dollars (S$70.7 billion) in 2007. -- AFP