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The Australian Prime Minister, Julia Gillard, announced on March 20 that the Australian government plans to open a Consulate-General in Chengdu, the capital of China's Sichuan province.

Australia has had diplomatic relations with China for 40 years and the Australian embassy in Beijing was established in 1973. The Consulates-General in Shanghai, Guangzhou and Hong Kong were established in 1984, 1992 and 1986 respectively.

The foundation of the Australian Consulate-General in Chengdu was proposed by the former Foreign Minister, Kevin Rudd.

Gillard said broadening Australia's diplomatic presence in China is a priority for the Australian government.

"The new Consulate-General will help build the ever-growing relationship with China," said Gillard, "It will also help boost opportunities for Australian businesses."

The new Foreign Minister, Bob Carr, said the Consulate-General in Chengdu will provide a direct link to a diverse province which is home to more than 80 million people.

Trade and Competitiveness Minister, Craig Emerson, said the mission in Chengdu will help develop trade partnerships between Australia and China.

China is Australia's largest two-way trade partner, with total trade value of more than 113 billion dollars in 2010/2011.

Many Australian companies, including BlueScope Steel, Rheem, ANZ and Cochlear have set branches in West China.