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But, leaders on both sides tried to patch up the frayed relationship.
After Vice-Premier Li Keqiang visited Australia in November 2009, there was growing consensus that the relationship between China and Australia had normalized.
Rudd, once again referred to "zhengyou" in a speech at the Australian National University in April this year.
Rudd said the country would respect China's core interests, especially its territorial integrity, and expressed a strong desire to improve bilateral relations.
Vice-President Xi Jinping, during his visit to Australia recently, also pointed out that all-out partnership between China and Australia had set an example for countries with different political systems, cultural backgrounds and different development stages to seek harmonious co-existence and joint development.
Following Xi's comments, the international media said that he had "described the relationship exactly", which reiterated closer partnership between China and Australia.
Third, Rudd established the Australian Centre on China in the World to improve bilateral academic exchanges, foster Australian specialists familiar with China, and induce a better perception of China.
Rudd maintained that the world was interested in China's role in global affairs, and that it needed more knowledge and understanding of modern China.
In this regard, the center was established with an initial investment of A$53 million.
The center will have eminent specialists on China, and will serve as a platform for academics from Australia, China and other countries to interact with each other.
Hoping that the center would play an important role to foster mutual understanding, Xi spared some time off from his busy schedule during his visit to donate books to the center.
The center is expected to nurture Australian specialists who will actively pursue a different approach to China.
As a veteran statesman, Julia Gillard is expected to take a pragmatic view regarding Sino-Australian ties, and endeavor to make sure that the relationship is on the right track.
Though Gillard is not a China hand like Kevin Rudd, she can certainly learn something from his elucidation of "zhengyou".
China and Australia have of late set up many mechanisms to solve bilateral issues. Both nations have also deepened mutual understanding and built consensus on many pressing problems.
Julia Gillard's China policy will certainly benefit from Rudd's sustained efforts to foster better ties.
The author is a researcher at the China Institutes of Contemporary International Relations.
(China Daily 06/30/2010 page8)