Objectives:
The research aims to delineate and explain the state of bilateral relations between Australia and China in the context of the stability of the Indo-Pacific region.

Material and methods:
The main tools used to achieve the objectives mentioned above include a literature analysis, statements, diplomatic and quantitative data from governmental sites, and logical reasoning.

Results:
Reliable and balanced bilateral relations between the People’s Republic of China, the largest regional power, and Australia, the most influential Western outpost in the Indo-Pacific, are sine qua non condition of stability in the region. However, within the last decade, there was far too much uncertainty and malevolence between the two parties to pass unnoticed: trade and investment restrictions on Chinese companies, not to mention political tensions due to unprecedented Chinese interference in Australia’s domestic affairs. The article analyzes bilateral Sino-Australian relations, including political, economic, and social dimensions, in the context of regional security issues.

Conclusions:
Relations between China and Australia are underpinned by their strong economic interdependence and Australia’s security alliance with the U.S. While concerns over trade tensions may soon be over, Australia needs to accommodate the reality of China’s more active presence in the Indo-Pacific region.