Another deal commits Chinese experts and engineers to work on the expansion of Fortescue's iron ore projects in the Pilbara region of Western Australia, which Rudd said will be worth 5 billion Australian dollars (4.4 billion U.S. dollars) a year in exports.

China Development Bank will also provide 1.2 billion U.S. dollars for a joint venture to build a new port and rail facilities at Oakajee in Western Australia, and invest in Aquila's coal and iron ore projects in the Pilbara.

"This demonstrates the dynamic relations between the two countries in this sector, and the strong complementarity of the two economies," Rudd said in a statement.

AAP said China is Australia's largest trading partner, and its investment on iron ore and natural gas helped keep Australia out of the global recession.

According to ABC Radio, with new agreements signed, and cordial words exchanged, Xi's visit to the Australian capital has " delighted political and business leaders of both countries."

"Vice President Xi has delivered much needed political impetus to the difficult Australia-China free trade negotiations," ABC Radio said.

Foreign Minister Stephen Smith said Xi's visit was a signal that the Australia-China relationship had matured to the point where problems could be worked through.
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