Australian economic relationship with China soared to new highs, growing by 53.5 per cent in 2011, a latest report said on Friday.

The latest report, PwC Melbourne Institute Asialink Index, published by PricewaterhouseCoopers (PwC) and the Melbourne Institute, released on Friday.

According to the report, Australian investment in China now amounts to about A$17 billion (almost $17.6 billion). It reflects rapid growth in outward investment, up by 278 per cent in 2011, from Australia into China and strong growth in tourism.

"The recent increase in Australia's investment into China is encouraging as it demonstrates that Australian businesses are preparing to commit to deeper engagement, beyond exports, for the longer term," PwC partner Tim Cox said in a statement.