The new Albanese government says it wants to work with all countries in the region after Beijing signalled a possible thawing in the frosty relationship between China and Australia.
China's Premier Li Keqiang has reportedly sent a congratulatory message to Prime Minister Anthony Albanese, saying Beijing is willing to push forward bilateral ties with Canberra.
"The sound and stable development of the Sino-Australian relationship conforms to the fundamental interests and common aspirations of the two peoples and is also conducive to peace, stability, development and prosperity in the Asia-Pacific region," the China Daily reported Mr Li as saying.
Mr Li said this year marked the 50th anniversary of the establishment of Sino-Australian diplomatic ties, noting the Labor Party made the right decision in the 1970s to establish a relationship with China.
Australia's relationship with the regional powerhouse has soured in recent years, with Beijing refusing to take calls from the outgoing Morrison government and blocking imports on a variety of goods despite a free-trade agreement between the two countries.
China is still Australia's biggest trading partner, especially through the shipments of iron ore.
Asked whether China was now out of the "deep freeze", Treasurer Jim Chalmers told ABC radio on Tuesday, "We want to work with countries in our region to make sure it is stable and prosperous".
That was the reason Mr Albanese and new Foreign Affairs Minister Penny Wong were in Tokyo to engage with Australia's Quad colleagues the US, India and Japan.
"That's why the developments on the trade front are so exciting, because we want the region to grow strongly," Dr Chalmers said.
"We want all of our economies to benefit from that and we will engage with countries in the region on that basis."
However, the apparent olive branch from China comes as US President Joe Biden warned Beijing not to interfere with Taiwan or the US would intervene militarily.
Acting Prime Minister Richard Marles said it was an important message that made clear America's presence in the East Asia region.
Asked on the Nine Network whether Australia would send troops if the US took such action, Mr Marles said: "I don't think we should be going down the path of hypotheticals."
"But I do think the American statement is important. I think what it means in respect of removing strategic ambiguity is important."
