China is now the number one knowledge partner of Australia as 39 Australian universities have signed more formal agreements with their Chinese partners than their counterparts in any other country, a latest report said on Monday.

The Universities Australia report released on Monday shows a 72 percent increase in the number of university agreements with China since 2003, rising from 514 to 885 and overtaking the United States for the first time.

Of the 885 agreements with China, 89 percent involved academic or research collaboration, 25 percent involved student exchanges, 48 percent involved staff exchanges and 6 percent included a study abroad component.

"In 2009, China became Australia's number one trading partner. Just three years on, it is also our number one knowledge partner," Universities Australia Chief Executive Belinda Robinson said.

Universities Australia was established in May 2007 as the peak body representing the country's 39 universities in the public interest both nationally and internationally.

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