In the wake of the Prime Minister's decision to impose a diplomatic boycott on the Beijing Olympics, some Liberals are fearful about how the government's anti-China rhetoric could impact on key federal seats at the next election.
As major parties campaign ahead of next year's federal election, the government's stance on China is perceived by key voters as a potential distraction.
After the boycott of the Olympics, Liberal sources have voiced concern that the government's anti-China rhetoric is alienating some Australian-Chinese voters.
One Liberal source in New South Wales said there was a strong feeling in some parts of the Chinese-Australian community that those talking about the war were "absolutely insane".
Some argue that Australia can take a stand against China's human rights abuses without joining the boycott of the Olympics.
But on that front, even the government's political opponents supported the decision.
Labor leader Anthony Albanese is one of them.