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SYDNEY, Nov. 19 -- Chinese President Xi Jinping said here Wednesday that the setup of the China-Australia Provincial/State Leaders Forum is a new milestone for the two countries' cooperation.

Accompanied by Australian Prime Minister Tony Abbott, Xi attended the forum and addressed the participants, including some Australian state premiers and Chinese provincial governors.

Xi extended his congratulations to the forum, saying exchanges and communications between the two countries' states and provinces have significantly promoted bilateral ties at national level.

Noting that so far 94 pairs of provinces and cities of the two countries have established friendly relationships of sisterhood, Xi said both countries enjoy exchanges and communications at various levels and their cooperation expands to all fields.

Noting that China and Australia have decided to upgrade their ties to a comprehensive strategic partnership and practically conclude bilateral negotiations on a free trade agreement, Xi hoped that the two sides could grasp this opportunity to further boost bilateral local communication and cooperation.

For his part, Abbott said the opening of the China-Australia Provincial/State Leaders Forum is another important outcome of President Xi's state visit to Australia, and described the forum as an event of great significance in the development of bilateral ties.

He said Australia admires China's rapid development, regards China as a key partner, and is ready to work together with China for a brighter future.

Sydney is the last stop of Xi's visit to Australia. He is due to arrive in New Zealand on Wednesday evening for a state visit, the second leg of his ongoing three-nation trip, which will also take him to Fiji.