Chief negotiator Zhang Xiangchen said agriculture, services, government procurement and investment would all be covered in a free trade agreement (FTA) under negotiation with Australia.

Canberra's increasingly warm political links with Beijing had played an important role in framing China's commitment to choose Australia for its "most complicated, important and comprehensive" bilateral trade deal to date, he said.

"Five years after joining the World Trade Organisation, we need to take another big step forward in trade, and it is good for us to have this experiment with Australia rather than with other developed countries," he told The Australian.

Speaking on Friday after talks with Australian officials in Beijing, Zhang said that at the next round in September the countries would discuss the size of the deal each will seek and concede on manufactured goods and agriculture.

Exports to China soared 46 per cent to $16 billion and imports grew 19 per cent last year, when China overtook the US to become Australia's second-largest trading partner after Japan.

On resources, which dominate Australia's exports to China, Dr Zhang said: "We don't need to spend a lot of time in the FTA on this. It's quite obvious all the tariffs will go to zero."

Agriculture, he said, would be easier for China to settle than services, in part because it was easier to forecast the capacity of Australia's farmers, and thus the trade impact.

"You have very good quality of products and good price and good potential in agriculture, in grains, sugar, wool, cotton and other products ¨C land-intensive products. And we are very interested in horticulture exports to Australia.

"We assume that after the FTA we shall export more manufactured products. But much depends on the development of Chinese industry in the context of globalisation.

Location and production and marketing are now quite global, and many Chinese producers, for instance of cars, are joint ventures, and are subject to global strategies."

He said that "after a long debate, we agreed everything should be put on the negotiating table", including investment, though to provide Australian investors with easier access would involve "fundamentally changing the current regime involving hundreds of laws and thousands of domestic regulations".

Talks began a year ago, but the first four rounds comprised an exchange of information rather than negotiations. Last week, Australia led the shaping of future talks by tabling the 15 chapters likely to be included in the final agreement, though without many of the crucial figures.