The Prime Minister, John Howard, and China's Premier, Wen Jiabao, have overseen the signing of a nuclear safeguards deal between the two countries.
The deal opens the way for exports of uranium to fuel China's booming nuclear power industry.
The federal government says the first significant export sales of uranium are not expected for at least three years.
Premier Wen has emphasised the nuclear material will not be used for military purposes.
"Today, while we sign the agreement on nuclear cooperation between China and Australia, we also put in place a mechanism for safeguards.
"We believe that these safeguard mechanisms will ensure that the nuclear cooperation will not be used for non-peaceful purposes."