Chinese President Xi Jinping (R) shakes hands with Australian Prime Minister Tony Abbott during their meeting in Canberra, capital of Australia, Nov. 17, 2014. (Xinhua/Pang Xinglei)

CANBERRA, Nov. 17  -- China and Australia embarked on a new journey for their relations Monday as the two countries upgraded their diplomatic ties to a comprehensive strategic partnership and practically concluded their negotiations on a free trade agreement (FTA).

GROWING TIES

"It is a natural result for the two sides to jointly decide to elevate the bilateral ties," visiting Chinese President Xi Jinping told Australian Prime Minister Tony Abbott during their talks here Monday.

Both as important countries in the Asia-Pacific region, China and Australia have enjoyed economic complementarity, friendly people-to-people relations, frequent contacts and extensive cooperation, Xi said, noting that such features in the bilateral relations as being "comprehensive and strategic" have been increasingly outstanding.

"The two sides should proceed from the new historic point to expand exchanges, strengthen dialogues, respect each other, forge ahead and deepen cooperation, thus bringing more benefits to people in both countries and contributing more to the peace and prosperity in the region and the whole world at large," Xi said.

Abbott said that President Xi's visit bears historic significance and the establishment of a comprehensive strategic partnership between Australia and China marks a higher level of their bilateral relations.

He said that Australia admires the achievements China has made in reform and opening-up and is willing to enhance cooperation with China on the basis of mutual respect, friendship and mutual benefits.