Australia-China relations have begun to thaw, but Australian Foreign Minister Penny Wong said recently that both countries recognize the unlikelihood of returning to their thriving bilateral relationship of the past. A spokesperson for Australia's Department of Foreign Affairs and Trade told Federal Newswire that Australia's goal for the region is for every country to play by the rules and benefit from stability and prosperity. 

In a speech to the National Press Club on April 17, Wong addressed Australia's role in a changing regional power structure, saying the nation has to do whatever is necessary to advance Australia's interests in a changing world.

"Australia seeks a region that is open, stable and prosperous, operating by agreed rules, standards and laws," a spokesperson for the Department of Foreign Affairs and Trade told Federal Newswire. "No one country should dominate, and no country should be dominated. We want sovereignty to be respected, and all countries to benefit from a strategic equilibrium. We are working with partners to pursue our collective interests in the region."

Wong added that it is in the best interests of "Australia and China to continue on the path of stabilizing the bilateral relationship. We will cooperate where we can, disagree where we must and above all else, engage in our national interest."

Wong said that to avoid war, maintain peace and advance their interests, each country must adhere to certain standards and be free to "pursue its own aspirations."

She suggested that strategic competition must be comprised of the "interwoven" domains of the economy, diplomacy, strategy and military power, and the goal of the competition is to project influence "over the way our region and our world work."

Wong said Australia needs to make sure that its fate isn't determined by any other nation, especially right now, "because our region faces circumstances in some ways unprecedented." Specifically, she mentioned tensions in the South China Sea, China's modernization of its military and lack of transparency, as well as its continued military exercises near Taiwan. Wong said there is a "risk of miscalculation," and she also discouraged officials from engaging in speculation about Taiwan, adding that it is in Australia's interest that the status quo remains unchanged, because a China-Taiwan conflict "would be catastrophic" for all nations.

"We know that there would be no real winners, and we know maintaining the status quo is comprehensively superior to any alternative," Wong said. "It will be challenging, requiring both reassurance and deterrence, but it is the proposition most capable of averting conflict and enabling the region to live in peace and prosperity." Wong added that, "China is going to keep being China," and China has the second-largest economy in the world and remains Australia's top trade partner. She said Chinese President Xi Jinping's stated goal of China being "a great modern socialist country that leads the world" can't distract Australia. Instead, Wong said, Australia should focus on "pressing for our own advantage."

Both countries have taken steps to improve ties in recent years, China Briefing reported, after Australia banned the import of Chinese telecommunications equipment and joined AUKUS defense agreement with the United States and United Kingdom in 2020. COVID-19 continued to cool relations, as China imported 85% less coal from Australia in 2021 than in 2020.

Both Wong and Australian Prime Minister Anthony Albanese met with Xi and other Chinese officials last year, discussing challenges facing the regions such as trade, defense and climate change.