China is reluctant to increase policing and defence support in East Timor due to the potential reaction from Australia, the Pacific nation's president says.
Giving credit to Beijing, Jose Ramos-Horta says more Chinese support could span infrastructure for the defence force and police, including by building compounds.
"Sometimes when I chat with the Chinese about increasing their support ... they say they'd be willing to do, but they are a bit concerned about the over-reaction - or potential over-reaction - in Australia and elsewhere," he told ABC radio on Monday.
"The Chinese are actually sensitive to the sensitivities of our neighbours, so they are more respectful of Australia's position than Australia is of the Chinese position."
Beijing and Dili recently upgraded their economic partnership, which included defence ties and military interactions.
The Australian government and intelligence community "know well Timor's position, so they are not worried about it", Mr Ramos-Horta said after previously saying military co-operation with China had not been discussed.
Chinese economic partnerships were nothing new for the region, the president said.
"We need more hospitals, we need to upgrade existing hospitals (and) clinics," he said.
"So these will be a priority for me and this comprehensive strategic framework agreement whereby we could ask for Chinese support."
He also played down concerns about Chinese naval visits, saying such visits had increased from a variety of nations, including Australia.
But he had not dismissed the concerns, the president said.
"A month ago we had an exceptional visit from for Chinese navy hospital, super modern," he said.
"That's the kind of operation and we are not talking about military training because that we do primarily with Australia."
Negotiations over developing a gas field between Australia and East Timor are also expected to wrap up by early 2024.
