In a positive sign that trade ties are slowly normalising, China has confirmed today it will lift its ban on Australian timber imports. China maintains the ban was purely a regulatory measure. But Australian officials say it was part of a broader campaign of economic punishment. And will keep pushing for the removal of all remaining trade barriers. The breakthrough coincides with one of this country's most respected defence figures issuing a blunt warning over China's military build-up. Australian Financial Review North Asia correspondent Mike Smith joins The World with more.
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