China-Australia relations reach ‘good enough’ baseline, ex-envoy says
China-Australia relations have stabilized at a "good enough" baseline for Canberra, according to former diplomat Graham Fletcher, despite Beijing's desire for deeper engagement. The ties, strained since 2017, are now on a more realistic footing.
Intelligence analysis by Gemini 2.5 Flash

After years of significant strain, diplomatic and economic ties between China and Australia have found a stable, albeit cautious, equilibrium. While Canberra views the current state as "good enough" and remains wary of Beijing's broader ambitions, both nations are engaging in practical cooperation like reviewing their free-trade agreement.
Imagine two friends, China and Australia, had a big fight a few years ago and stopped talking much. Now, they're starting to be friendly again, but not best friends. Australia thinks things are "good enough" for now, like playing nicely on the playground, but China wants to be closer. They're even working on some old agreements, but Australia is still a bit careful because of past disagreements.
Analysis
Graham Fletcher
Graham Fletcher, a non-resident fellow at the Lowy Institute and Australia's ambassador to China from 2019 to 2023, offers a critical assessment of the current state of China-Australia relations. His perspective, rooted in direct diplomatic experience, suggests that Canberra now perceives the relationship as having reached a "good enough" baseline. This implies a level of stability and functionality that satisfies Australia's immediate needs, even if it falls short of Beijing's more ambitious goals for deeper engagement.
Fletcher's analysis highlights a shift towards a "more realistic footing" for the bilateral ties. This realism acknowledges the persistent underlying tensions while recognizing the necessity of practical engagement. His insights are particularly valuable given his tenure as ambassador, which spanned a period of significant strain and subsequent cautious re-engagement between the two nations.
2017
The year 2017 marked a significant turning point and a period of severe fracture in China-Australia relations. This downturn was primarily triggered by Canberra's introduction of anti-foreign interference legislation, which was widely perceived in Beijing as targeting its influence operations. Accusations of political infiltration by China further exacerbated the diplomatic rift, leading to a prolonged period of strained communication and economic coercion.
This historical context is crucial for understanding the current cautious approach adopted by Australia. The memories of the diplomatic freeze and the economic repercussions, such as trade disruptions affecting Australian exports, continue to shape Canberra's strategy. The "good enough" baseline, therefore, reflects a desire to avoid a return to such hostile conditions while maintaining vigilance against perceived threats to national sovereignty and security.
International Supply Chain Promotion Expo
A recent positive indicator of the stabilized, albeit cautious, relationship was Australia's participation as the guest country of honour at China’s International Supply Chain Promotion Expo held in Beijing in June. This event signifies a willingness from both sides to engage on economic and trade fronts, despite the lingering security frictions. Such high-profile participation suggests a pragmatic approach to maintaining economic ties, which are vital for both nations.
The expo provided a platform for Australian businesses to connect with Chinese counterparts, potentially easing some of the trade barriers that emerged during the period of heightened tension. While this engagement does not erase the deep-seated security concerns, particularly regarding issues like the South China Sea, it demonstrates a commitment to fostering practical cooperation where mutual interests align, reinforcing the idea of a functional, if not fully harmonious, relationship.
Key points
- China-Australia relations have reached a "good enough" baseline for Canberra after years of strain.
- Former Australian ambassador Graham Fletcher described the ties as being on a "more realistic footing."
- The relationship fractured in 2017 following Australia's anti-foreign interference legislation.
- Current positive engagements include a free-trade agreement review and Australia's role at a China expo.
- Deep-seated security frictions, such as those concerning the South China Sea, still remain.
The current "good enough" baseline suggests a foundation for continued, albeit cautious, engagement between China and Australia. Practical cooperation, such as the review of their free-trade agreement and Australia's participation in the International Supply Chain Promotion Expo, could lead to further economic benefits and a gradual rebuilding of trust, preventing a return to the severe diplomatic freeze of previous years.
Despite the current stabilization, deep-seated security frictions, particularly over issues like the South China Sea, persist and could easily reignite tensions. Canberra's wariness of Beijing's broader ambitions indicates a fundamental distrust that could limit the extent of future cooperation, potentially leaving the relationship vulnerable to new geopolitical pressures or disagreements.


