Australia and China's relationship should weather the impacts of a Trump administration with Beijing spruiking free trade as the incoming president announces more tariffs.
China's ambassador Xiao Qian regretted the economic pain tariffs caused Australian businesses as incoming US president Donald Trump announced an extra 10 per cent tariff on China when he reclaims office in January.
The trade barriers weren't borne of necessity but were "perhaps based on geopolitics" and had impacted companies in China and Australia, he said.
"I'm sorry to say that happened," he told reporters in Canberra on Tuesday.
"Both sides benefit when we co-operate and we lose when we don't."
Tens of billions of dollars of trade barriers were put up by China against Australia as part of a years-long trade war that has since largely been resolved.
The two nations had inter-dependent economies, with China being a major buyer of iron ore while providing huge markets for Australian exporters, Mr Xiao said.
"No other country can single-handedly take the place of China in this respect and we do not see any other country can take the place of Australia," he said.
Beijing and Canberra had successfully stabilised the relationship and there was good momentum, Mr Xiao said, as he expressed hope it would move forward into a development phase.
"There's no reason for us to compromise our respective national interest for the sake of a third party," Mr Xiao said when asked if a hawkish Trump administration could undermine Australia's relationship with China.
While common interests should be the focal point, there would be differences, Mr Xiao said.
But these differences shouldn't disrupt or hijack the overall relationship, he said.
Flashpoints in the relationship include several manoeuvrers by the Chinese military which Australia says threatened its personnel, and consular cases that impede political freedoms.
Most recently, Australia denounced the sentencing of pro-democracy activists in Hong Kong - including its citizen Gordon Ng - under a wide-ranging national security law that human rights advocates admonish as being draconian.
Mr Xiao told the federal government to respect the rule of law in China, saying it was a domestic legal affair, and called for greater military ties to foster trust between defence forces.
The ambassador also played down concerns about China striking security and policing pacts with Pacific island nations, saying the agreements weren't exclusive and Australia could play a role alongside Beijing in the region.
China's relationships with Pacific countries were based on mutual respect and Beijing was invited to co-operate by some governments to help maintain peace, stability and social order, he said.
"We are inclusive, we are open to trilateral or quadrilateral co-operation," he said.
"It's a region that both China and Australia can jointly co-operate to contribute."
He categorically ruled out any military bases in the region.
"Anything other than this is a misinterpretation," Mr Xiao said.
"I do not see there's a need for our Australian partner to be worried about China's presence in the region or China's relations with regional countries."
