Responding to a question on the proposed free trade zone in Guangdong province, Crews said that Australia hopes that all the future FTZs, including those in Guangdong, Tianjin municipality and Fujian province, and other major economic developments in China would be considered for inclusion in the FTA during the review process. The two sides are committed to review the agreement within three years and conduct further reviews at least every five years, he said.

Some of the FTA commitments relate to the existing FTZ in Shanghai, such as those in value-added telecommunications and legal services, he said.

The Guangdong FTZ, which includes new areas in Nansha in Guangzhou, Qianhai in Shenzhen and Hengqin in Zhuhai, received approval from the State Council last year. The master plan and the negative list, on which many central government agencies had reached consensus, would be discussed by the State Council soon, Li Chunhong, director of the provincial development and reform commission, said on Tuesday.

On challenges, Crews said there will be "quite long phase-outs" in tariff cuts in sensitive sectors to both countries.

Tariffs on infant formula will be eliminated in four years and that on milk powder in 11 years, for example, to allow Chinese dairy producers enough time to manage the potential growth in imports.