Australia unveiled yesterday a long-term plan to boost trade with a booming Asia, aiming to lift Asian input into its economy to one third by 2025 from 25 percent now, via more business with China and India in particular.

Releasing a new policy document, "Australia in the Asian Century," Prime Minister Julia Gillard said Australia was well placed to benefit from the economic rise of China and India, and to boost trade and investment with the broader region.

"Whatever else this century brings, it will bring Asia's return to global leadership, Asia's rise. This is not only unstoppable, it is gathering pace," Gillard said.

The plan targets Asian tourism and greater expected demand for food and education to match Asia's appetite for mineral resources that has fuelled a long mining boom in Australia. It also targets more Asian investment in Australia and lower trade barriers, although does not recommend changing Australia's foreign investment rules, which include intense scrutiny of planned investments from overseas state-owned firms.

Australia is a member of the 21-member Asia Pacific Economic Cooperation group, and is one of the 11 members involved in negotiations for a Trans-Pacific Partnership, both of which aim to liberalize regional trade.

China has become Australia's top trading partner, ahead of Japan, the United States and South Korea.

Australia will be able to balance its defense and security ties to the United States with supporting China's military growth and stronger role in the region, the document said, adding that any policy aimed at containing China would not work.

The United States is Australia's closest military ally and a deal to allow the US to rotate marines through northern Australia, under the US "pivot" to the Asia-Pacific region, has met with suspicion in China.

"We accept China's military growth is a natural, legitimate outcome of its growing economy and broadening interests," the policy document said. "It is important that China and others in the region explain to their neighbors the pace and scope of their military modernization, to build confidence and trust."

Australia is reviewing its defense and strategic outlook and will release its new long-term military outlook in mid-2013.

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