Consumers, exporters win from China free trade deal

Australian consumers will reap the benefits of cheaper Chinese goods and miners and farmers will get a boost under a free trade deal with China.

Chinese President Xi Jinping heads to Tasmania on Tuesday after reaching a deal with Prime Minister Tony Abbott to cut tariffs and lift thresholds for foreign investment.

The Chinese leader told parliament on Monday he wanted to "join hands" with Australia to enhance peace, stability and prosperity in the Asia-Pacific region.

The free trade agreement comes 10 years after talks were kicked off by John Howard and continued through the Rudd, Gillard and Abbott governments.

More than 85 per cent of Australian goods exports will be tariff-free when the agreement starts, rising to 93 percent in four years.

When it is fully operating 95 percent of Australian goods exports to China will be tariff free.

The deal will also allow visas for more Chinese executives and contractors to work in Australia and vice versa.