A Chinese scholar linked to the foreign ministry believes the Australia-United States alliance has been weakened and the "unpredictability" of President Donald Trump could create opportunities for China to expand in the region.
Liu Qing, from the China Institute of International Studies, a think tank that sits under the Foreign Ministry, said the harsh exchange of words between the two leaders will prompt Canberra "to consider whether it should pursue a more independent foreign policy", a shift that would be welcomed in Beijing.
"Australia has been an obedient ally to the US since World War II," he said in an interview on Friday.
"It has followed orders, even more closely than a country like Canada."
Mr Liu said President Trump's "unpredictability" would allow Beijing to extend its influence in the region, as neighbouring countries become more willing to co-operate with China.
For years, Beijing has been lobbying countries in the region to distance themselves from Washington. Its key message to US allies such as Japan and the Philippines has been that the US would not protect them in the event of a war while countries such as Australia were warned they could be dragged into an unwanted confrontation. Australia has had to balance the interests of its biggest economic trading partner with those of its most important security ally, often putting the government in a difficult position.
US defence secretary James Mattis is visiting South Korea and Japan this week to reinforce the relationships with the two countries.
"Beijing is looking for any opportunity it can find to drive a wedge between the US and its allies in the region," said Ashley Townshend, a research fellow at the United States Studies Centre at the University of Sydney.
"It's important to understand this refugee deal spat is not a disagreement about the US alliance itself. It is a political disagreement between two close political allies."
However, he said it becomes troubling in that it increases the Australian public's contempt for Mr Trump.
"Australia and the US are looking to deepen the military and security aspects of the alliance, and for that to happen it is crucial you have public opinion on your side," he said.
Without strong backing from the Australian public, it would also be harder for the Trump administration to convince Canberra to back it in the event of a conflict in the region. Since taking office, Mr Trump and members of his team have made provocative comments about China's island-building activities in the South China Sea and suggested Washington's "One China" policy, under which it recognises Beijing's claim to Taiwan, was up for negotiation.
"The danger of a military conflict between China and the US has increased in the medium to long term," said Zhang Jian, associate professor at the University of New South Wales in Canberra who specialises in China security issues.
"In the short term, I think Trump will be focused on the economy and domestic problems."
Rather than bring Australia and China closer together, Mr Zhang believes the tensions between Mr Turnbull and Mr Trump following the combative phone call will motivate Australia to shore up other partnerships in the region.
"Australia will still be very concerned about China's influence and rising position in the region and will seek closer co-operation with Japan, other countries across south-east Asia and also perhaps closer economic and security ties with the United Kingdom."
