Prime Minister Julia Gillard has called for an increased defence cooperation with Beijing as she wraps up her first visit to China. Gillard said a closer military ties with China would promote good relations and maintain regional peace and prosperity.

At the same time, Gillard told the Chinese government that is naval vessels are welcome to make port calls in Australia as she supports a gradual cooperation and links between the two country's militaries.

For his part, Chinese President Hu Jintao commended Gillard's efforts to promote friendship between Beijing and Canberra even as the U.S. expressed its concern over the lack of transparency from the Chinese side.

Hu told Gillard at a meeting in Beijing's Great Hall of the People on Wednesday night, "Since becoming Prime Minister you have repeatedly expressed your commitment to developing a pragmatic, friendly, mutually beneficial and comprehensive relationship with China."

Gillard has capped her nine-day state visits through northern Asia where she visited Japan and South Korea, with a call for better engagement with nations of the Asia-Pacific region.

Also on Tuesday, the Australian premier rejected a call by the U.S. and her allies, to attempt to contain a growing China. Gillard pointed to defence as an area of cooperation between Australia and China as she cited the annual trips made by Australian Chief of the Defence Force Angus Houston to Beijing to discuss to his counterparts as part of growing links that were creating deeper understanding between the two nations. "We have participated in some joint exercises, including live-firing exercises," she said.

"An important part of building defence links is to build understanding so people know each other and have an understanding of each other at a human level, as well as at a very formal level."

The premier also expressed confidence with the current military cooperation between the two nations which said hope would increase.

"Of course we want to see increased military transparency. That helps build understanding about people's military methods and military protocols. The best way of working though these issues is to, at a step at a time, engage in increased co-operation and links. I'm pleased we've seen that between Australia and China in the defence area," she said.