The visit comes four months after the free trade agreement went into effect. Under the agreement, more than 86 percent of Australian exports can enter China duty-free, with the proportion rising to 94 percent in 2019 and 96 percent in 2029.

"The engagement gets stronger all the time," Turnbull said. "We have a lot of good work to do together."

Turnbull made no mention of concerns over the South China Sea issue in his speech in Shanghai on Thursday, according to The Associated Press. Last month, he described China's military deployments in the South China Sea as "counterproductive".

Hans Hendrischke, a professor of Chinese business and management at the University of Sydney, said the two countries will discuss the diversification of economic ties during the visit.

He said the bilateral relationship is moving from one focused on bulk goods and commodities to a much closer interaction across a range of industries — services, agriculture and others.

"It will mean closer government business interaction on both sides," he said.

Steven Ciobo, Australian minister for trade and investment, said the business delegation will promote "the best we have to offer in cities across the country" during Australia Week in China.

"We are committed to such a large showing because China will remain our largest export market for the foreseeable future," Ciobo said in an article for News Corp.

Ni Yueju, a researcher of world economic studies at the Chinese Academy of Social Sciences, said that sending its largest-ever business delegation shows that Australia attaches great importance to the Chinese market.

She said both countries have agreed to enhance trade and economic cooperation after experiencing a fall in trade volume last year amid the sluggish world economy.

China's retailers, wholesalers, service providers — including training schools and tourism agencies — are also forming relations with Australian associations, local governments and enterprises.

For example, Australia's premium brand Nova Spring Water and Chinese chain retailer T3C signed a memorandum of understanding to coincide with Australia Week in China.

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