Australia’s over-reliance on the goodwill generated by its free trade agreement with China to shield it from the ramifications of its political alliance with the United States could result in problems with Beijing for years to come, trade and foreign affairs experts said.

Singapore-based Dr Benjamin Ho, Assistant Professor at the S. Rajaratnam School of International Studies’ China programme, said the US-China trade war had set the example for trade to be used as a tool to wage conflict rather than stabilise relationships. “China wants Australia to take a position that is less confrontational and refrain from supporting American policies … it will attack Australia where it hurts, in its pockets,” he said.