SYDNEY, Sept 25 (AFP) - Australian ties with China are strong enough to survive Prime Minister John Howard's decision to meet the Dalai Lama, Trade Minister Tim Fischer said Wednesday in response to renewed Chinese protests.

China, which says Tibet's spiritual leader-in-exile was determined to split the "motherland," responded to Howard's decision to meet him here Thursday by warning that there would be a price to pay.

"This will definitely cast a shadow over Sino-Australian relations and unavoidably influence the political, economic and trade relationship between the two countries," Chinese Foreign Ministry spokesman Shen Guofang said.

Diplomats and businessmen say banks and insurance companies are favoured targets because Beijing calculates that damaging their activities would have minimal impact on Chinese interests, according to reports here.

Fischer said he hoped there would be no retaliation adding: "I believe that the size, the very volume of the business relationship, the political relationship, is so large today that no one circumstance should be allowed to derail it."

The Australian government had not in any way raised the issue of sovereignty and was strongly "committed to a one-China policy in respect of the autonomous region of Tibet," Fischer said in a radio interview.

It remained to be seen if China would accept Howard's statement that he would meet the Dalai Lama in his capacity as a religious leader.

"The Australian government would urge a focus on all that is positive on both sides of the relationship between Australia and China," said Fischer, who has personally refused to meet the Dalai Lama.

"I accept that these are matters which I hope will not derail the great common purpose that exists in building our business and diplomatic links between Australia and China."

China's state-run media described the decisions of Howard and Foreign Minister Alexander Downer to meet the Dalai Lama as "absurd" and an interference in China's internal affairs.

A commentary, released by the official Xinhua news agency, said Australian politicians who decided to meet the Dalai Lama had deserted Australia's policy of recognising Tibet as a part of China.

"All far-sighted people all over the world have drawn a line of distinction between themselves and Dalai, a conspirator who has been engaged in activities to split China under the cloak of religion," the commentary said.

"But certain Australian politicians have not done so. "On the one hand, they stated repeatedly that they pursue the 'one China' policy. On the other hand, they asserted that meeting with the Dalai Lama does not mean that they support independence of Tibet, adding that this is their concept of values.

"Such a concept of values means one's deeds do not match one's words. "This is really absurd."