Bilateral trade reached $122 billion last year. China imported $85 billion worth of Australian commodities including iron ore, coal, gold and agricultural products.

As of the end of 2012, Chinese direct investment stood at a cumulative $13 billion.

KGA also analyzed ways to broaden and deepen the trade relationship. Over the next 20 years, the backbone of the trade relationship - mining and resources - is expected to give way to growth in other sectors such as food and agriculture, as well as financial, professional, tourism and educational services, it predicted.

"This three-year study makes an important contribution to our understanding of the business environment Chinese companies are entering when investing in Australia.

"It also gives insights into the strategies Chinese companies of all forms can take to make deals win-win, such as keeping local management teams in place and having the best local advice across investment banking, legal issues and public affairs," said Geoff Raby, former Australian ambassador to China and senior adviser to KGA Australia.

Australian Prime Minister Tony Abbott announced in Bali, Indonesia, on Oct 7 that his country aimed to achieve a free trade agreement with China within 12 months. Progress on that pact has stalled since 2005.

"Australians' positive awareness of the China-Australia trade relationship will in turn help form a positive atmosphere for an early end to the FTA negotiations," said Jin.

"An FTA would bring significant benefits (to the two countries) so we are encouraged by the determination of both parties to press on with finding an agreement," said Bundey.