Former trade minister Andrew Robb says Australia must engage with China to ensure a peaceful transition of power in preparation for an Asian-dominated world, as he attacked the US policy towards China.
Mr Robb also stressed the country must put an end to "bloated" environmental laws, which he said were hurting investment and competitiveness.
He said an end to the approvals regime was necessary if Australia wants to remain competitive in the mining sector and prepare for a world dominated by China and India.
Mr Robb used the Australian Mining Industry's annual lecture on Monday night to call for reforms to mine approvals in order to set Australia up for the next boom.
He said Australia did not have a monopoly on commodities, but the state, territory and federal governments were a "major deterrent" to meeting competition for investment dollars.
"(We need) to deal urgently in correcting our bloated, dysfunctional and costly project approval processes," Mr Robb said on Monday night.
Prime Minister Malcolm Turnbull shakes hands with President Xi Jinping before the G20 leaders' family photo in Hangzhou on September 4, 2016. Source: Getty Images
"Our regulations can be a great strength for Australia, but it must be done in a common sense and efficient manner, or else we are pricing ourselves out of the investment market.
"The international competitiveness of Australia's mining and energy sectors is being seriously threatened as a consequence."
He also said China was about to enter a new consumer boom, and Australia's copper, lithium, cobalt and aluminium will be mined to make new consumer goods.
"While China increasingly demands resources for a consumer society, ASEAN countries will demand resources essential for development," Mr Robb said.
But he warned that Australia must engage with China to ensure good governance and the peaceful transition of power.
He said the United States' decision to give up on free trade has alarmed many countries, who now feel they have no one looking after their backs in dealing with China.
"Unfortunately, the United States appears yet to accept this inevitability, with both sides of the political aisle in Washington endlessly focusing on 'containment' of China — a futile and counterproductive approach in my view," Mr Robb said.
Mr Robb called for Australia to take a practical role in ensuring regional stability as China, India and the US face changing circumstances.
"The alternative of leaving two bulls in a paddock to fight it out is no answer," he said.
Mr Robb left politics in 2016 and became a lobbyist, including doing work for Chinese-based companies.
