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China has overtaken Japan as the world's second-largest economy and is now Australia's largest trading partner and export market.

 

BERLIN (AFP) ― Russian Prime Minister Vladimir Putin toned down Friday his enthusiasm for a vast EU-Russia free trade zone after German Chancellor Angela Merkel gave his proposals a cool reception in Berlin.

 

http://res.heraldm.com/content/image/2010/11/28/20101128000321_0.jpg

 

“This is more of a question for the future. I basically share it (the aim). We are neighbors and just like in other areas we will intensify our partnership step by step,” Merkel said.

Putin too sought to stress that his relations with Merkel were warm, noting that the two leaders had hugged and kissed at the meeting.

 

“We are good, old friends,” he said. “We do not have contradictions here ... Here I fully agree (with Merkel).”

 

But he said that closer commercial ties between Europe and Russia were essential and inevitable.

 

“Can we assume that Russia together with Europe will one day be in a single currency zone? I can assume that.”

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