CANBERRA - Australian Prime Minister Julia Gillard has welcomed the transition of the Chinese leadership to Xi Jinping after China officially announced its new generation leadership lineup on Thursday.

A spokesman for Gillard told local media on Thursday the government congratulated Mr Xi on his appointment at the 18th Congress of the Communist Party of China as party general secretary.

"General Secretary Xi Jinping is well known to Australia and we look forward to working closely with him in his new leadership role to deepen and enhance bilateral relations and to strengthen our engagement on a broad range of shared regional and global challenges," he said.

"Australia is committed to a positive, comprehensive, constructive and cooperative relationship with China, now and into the future."

Foreign Minister Bob Carr said the new Chinese leader had visited Australia, had a good knowledge of Australia and appreciated the nation's importance to China.

"We would see an opportunity to engage with the new leadership, " he told ABC television on Thursday.

Carr also said there was potential for a negotiated settlement over disputed territories in the South China Sea.

"I think with the leadership confirmed and the new leadership taking root there's hope to believe China will take a realistic and forceful attitude, but an attitude that leads towards a negotiated settlement," he said.