China, US should keep talking: Australia

Australia's trade minister Simon Birmingham is urging China and the United States to keep talking rather than keep escalating their trade war.

Trade Minister Simon Birmingham

Simon Birmingham says Australia is pushing for clear and fair rules on global digital trade. Source: AAP

China and the United States should keep their economies open to lift more people out of poverty, Australia's trade minister says.

The two superpowers have been involved in an escalating trade war, but Trade Minister Simon Birmingham said recent talks between them had been constructive.

"I hope that through dialogue, the US and China can head off the type of escalation, in terms of tariff increases, that has been foreshadowed by the United States," Senator Birmingham said in Shanghai on Sunday night.

"Rather than to go down a protectionist path that undermines the type of trade liberalisation that has been so critical to the economic growth of China, to lifting those millions out of poverty."

Australia and China have had a rocky relationship recently over Australian concerns about Chinese influence on domestic politics and cyber attacks.

But Senator Birmingham, on his first visit to China as trade minister, talked up the close relationship with Australia's largest trading partner.

"I'm an intensely positive person and I'm here wanting to bring a positive message to China, that we celebrate China's economic success to date," he said.

"We won't always agree, no two mature countries always agree on every policy position and there are strategic challenges that the prime minister has rightly highlighted.

"But we should focus on what is a very positive relationship."

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By Helen Chen

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