Kevin Rudd displayed some *cojones on his first trip to China as Australia’s prime minister.

In a speech this morning at Peking University, Rudd was not afraid to speak his mind even though the Australian economy is reliant on China’s appetite for its natural resources (iron ore, uranium, natural gas).

Speaking in fluent Mandarin, Rudd told the Chinese students that “there are significant human rights problems in Tibet.”

Here’s the relevant part of the speech:

This year, as China hosts the Olympics, the eyes of the world will be on you and the city of Beijing.

It will be a chance for China to engage directly with the world, both on the sports field and on the streets of Beijing.

Some have called for a boycott of the Beijing Olympics because of recent problems in Tibet.

As I said in London on Sunday, I do not agree.

I believe the Olympics are important for China’s continuing engagement with the world.

Australia like most other countries recognises China’s sovereignty over Tibet.

But we also believe it is necessary to recognise there are significant human rights problem in Tibet.

The current situation in Tibet is of concern to Australians.

We recognise the need for all parties to avoid violence and find a solution through dialogue.

As a long-standing friend of China I intend to have a straightforward discussion with China’s leaders on this.

We wish to see the year 2008 as one of harmony, and celebration – not one of conflict and contention.

Rudd is a former diplomat in Beijing, and perhaps his Chinese-language abilities are buying him some leeway in being straightforward with his hosts. Rudd, by the way, is the first major foreign leader to visit China following the Tibet unrest. The Australian, a national newspaper, immediately polled some students, and here is what the paper put on its website:

Although Mr Rudd's comments about "significant human rights problems in Tibet," might draw ire from his hosts Premier Wen Jiabao and President Hu Jintao, China's top students appeared unfazed.

Many went so far as to agree with Mr Rudd that handling ongoing unrest in Tibet peacefully and through dialogue was the best way to resolve the issue that has placed China's communist leaders under the global spotlight for nearly a month.

"I agreed with what he said," Li Yang, a graduate student in environmental sciences, said following the speech.

"The Tibetan issue should be resolved without violence and through dialogue, this is correct."

Although Mr Rudd's speech touched on many such sensitive issues, he also received praise for voicing intentions to become a friend in the true Chinese tradition, who can "offer unflinching advice and counsels restraint".

"His Chinese is very good, he speaks Chinese very well," said Hong Ziyun, a first year law student. "He really understands Chinese history and culture."

* Cojones is Mexican slang for testicles.