Defence Minister Stephen Smith says Australia can manage both a critically important economic relationship with China, and growing military ties with the US.
US secretary of state Hillary Clinton and US defence secretary Robert Gates are visiting Melbourne for the Australia United State Ministerial (AUSMIN) consultations on Monday.
The talks will focus on the US Force Posture Review, which will examine the US military presence in the Asia-Pacific, and the war in Afghanistan, among other issues.
The posture review could see the US make more use of its military bases in Australia and give greater opportunity for joint training.
Mr Smith said Australia could balance this alliance with the US and its vital economic relationship with China, despite worries about the rise of the new superpower.
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"We fully expect that as China grows economically so it will enhance its military capacity, but we expect that will be done in a transparent way," he told ABC TV on Monday.
"It's not Australia's role to be intermediary in those relationships.
"But we do have productive and good relationships with India and with China, both those relationships are growing, and of course we do have an alliance with the United States."
Mr Smith and Prime Minister Julia Gillard will attend a NATO summit in Lisbon, Portugal, later this month, to discuss the conditions-based withdrawal of coalition forces from Afghanistan.
Opposition Leader Tony Abbott also met with Ms Clinton on Sunday, and affirmed the coalition's support for engagement in Afghanistan.
"We support the commitment to Afghanistan but obviously it's not an endless commitment," he told ABC Radio.
"But it's important we don't leave Afghanistan without finishing the job and the job in Australia's case is to train the fourth brigade to a standard where it can maintain security in Oruzgan province."
Australian Greens senator Sarah Hanson-Young said Australia should examine how equal its relationship was with the US, not only with military ties but also trade.
"There's nothing wrong with becoming closer as long as, as good friends, we treat each other equally and we get mutual benefit from that," she told Sky News.
