Foreign Minister Julie Bishop has told China that she doesn't take seriously the Trump administration's threat to tear up its trade agreement with Australia.
China's foreign affairs minister, Wang Yi, asked Ms Bishop over dinner on Tuesday night about the Trump White House's stated intention to renegotiate US trade agreements with 11 countries, including Australia.
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"I can't believe it", she replied, according to one official present, and "I don't take it credibly", according to another.
It made no sense because the trade balance favoured the US, the Australian minister said. And, since the Australia-US free trade agreement took effect in 2005, the balance had moved increasingly in America's favour.
!["I don't take it credibly": Foreign Minister Julie Bishop has dismissed Donald Trump's attack on the Australia-US free ...](/web/20170210200344im_/http://www.smh.com.au/content/dam/images/g/u/8/g/7/e/image.related.articleLeadwide.620x349.gu9kb9.png/1486723408171.jpg)
At the same time, the two ministers pledged their countries to press ahead with free trade in the face of Trump administration protectionism.
In word and gesture, there were signs of growing warmth in relations between the two.
Mr Wang concluded his day with Ms Bishop by kissing her on both cheeks after dinner, an unprecedented gesture, much remarked upon by accompanying officials.
More substantively, Mr Wang abandoned his standard lecture critiquing the ANZUS alliance as "a relic of the Cold War".
![China's foreign affairs minister, Wang Yi.](/web/20170210200344im_/http://www.smh.com.au/content/dam/images/g/u/9/m/i/p/image.related.articleLeadNarrow.300x0.gu9kb9.png/1486723408171.jpg)
Strikingly, he said at their joint press conference that Australia "can continue to be an ally of the US, at the same time be a comprehensive strategic partner for China".
This is an explicit rejection of the notion that Australia has to choose. It was the first time he has conceded this point, in public or in private.
Mr Wang, like the NZ foreign affairs minister, Murray McCully, on a visit two days later, puzzled over whom to speak to - and how - in the new US administration.
Ms Bishop and Mr Wang discussed plans for China's Premier Li Keqiang to visit Australia in the next few months.
It would be the first visit by a Chinese premier in a decade, according to officials.
Australia and NZ also agreed to make common cause on free trade, in defiance of US protectionism.
Ms Bishop and her NZ counterpart acknowledged that next week's planned meeting between their two prime ministers was "an opportunity to reinforce our shared narrative about free trade and openness as a path to prosperity discussed", an NZ official said.
An Australian trade expert, Professor Tim Harcourt of NSW University, said he supported Ms Bishop's disbelief of the US threat to renegotiate the US-Australia free trade agreement:
"Why would you, honestly?" he said. The US trade surplus with Australia under the so-called AUSFTA had grown from $14 billion a year to almost $25 billion in the decade since it took effect.
If the US wanted any changes, "why not add a chapter rather than tear it up and start all over again?"
One point that all three countries - Australia, China and NZ - converged on was that US statements were so confused it was pointless trying to assess President Trump's foreign policy at the moment.
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