Full coverage: Premier Li Visits Australia, New Zealand

(Source: CGTN)

Chiense Premier Li Keqiang meets with Australian Prime Minister Malcolm Turnbull on Thursday and defended free trade while acknowledging 'some problems' during an address before the country's parliament.

Chinese Premier Li Keqiang (R) and Australian Prime Minister Malcolm Turnbull hold talks in Canberra, Australia, March 23, 2017. (Xinhua/Pang Xinglei)

China is Australia's largest trading partner. Its deficit with Australia last year was about 50 billion US dollars. But Premier Li said China will expand its trade relationship with Australia.

"I come here for free trade. We cannot deny that in the process of globalisation there are some problems. But this is not the issue of globalisation per se, it is not an issue of free trade, it is all about how to respond to it. We cannot close our doors. That is not the solution. So, I am here to discuss how we can further upgrade our free trade area, how we can build further consensus, in particular investment and trade in services. We want to continue to open up," Premier Li said.

Australian Prime Minister Malcolm Turnbull echoed Premier Li's call to deter protectionism.

"Australia and China work together to counter the rising tide of protectionism. Of course, free trade can only thrive in a peaceful and stable environment. During this visit, Premier Li and I will discuss, as we have before, the importance of upholding and maintaining stability in our region. And we believe China has much to contribute to global peace and prosperity in this time of rapid change," PM Turnbull said.

Li and Turnbull on Friday will detail an expansion of their two-year-old bilateral free trade pact in the areas of investment and services.