By Trevor Marshallsea, AAP China Correspondent

Beijing, Feb.27, AAP - China today previewed the visit here next month of Prime Minister John Howard by saying its relations with Australia had improved since a tumultuous year last year.

But it warned Canberra not to upset relations through its actions on the sensitive issues of Taiwan and Tibet.

"We believe Mr Howard's visit will be an important event in Sino-Australian relations," Foreign Ministry spokesman Tang Guoqiang said in answer to a question at a regular press briefing.

"I believe both China and Australia should make efforts together in developing such relations.

"But we should take note that in Sino-Australian relations, the issues of Taiwan and Tibet are two quite sensitive political issues.

"As for these two issues, we hope the Australian Government will follow the promises of its predecessor and not do anything harmful to both sides."

Sino-Australian ties were battered last year over issues including the visit to Australia of Tibet's exiled spiritual leader the Dalai Lama, and a visit to Taiwan by Primary Industries and Energy Minister John Anderson.

Diplomats said much ground was recovered through a meeting in Manila in November between Mr Howard and Chinese President Jiang Zemin.

But some Australian businesses appear to have paid a price for the political rift.

The ANZ Bank is still awaiting approval to open a branch in Beijing, although Australian officials were assured by Chinese counterparts last August that approval was only weeks away.

And Trade Minister Wu Yi this week said Australian insurers would have to be more patient in awaiting approval to write insurance in the country.

Tang said diplomatic ties with Austrlaian had generally been "good" since they were normalised in 1972, but admitted the initial Jiang-Howard meeting was a much needed tonic for the relationship.

"This meeting was a very important meeting ... for the recovery of the relationship between China and Australia," Tang said.

Mr Howard will visit China from March 28 to April 2.