Australia's foreign minister says China and the United States cannot afford to wage a trade war, as the world watches ties between the two nations fray amid fears of rising American protectionism.
Julie Bishop weighed in on the spectre of an economic stoush between the global giants while in Singapore talking about extraordinary change and uncertainty throughout Asia.
"I believe that both sides have too much at stake for there to be a trade war," Ms Bishop told Bloomberg News on Monday.
"The United States has issues with China, China has issues with the United States, but I believe they can be resolved by high level consultation and discussion and I hope that we see that."
Her comments came after China's commerce minister warned a trade war between his country and the US would only hurt both nations.
US officials understood the ongoing need for leadership and engagement in Asia, Ms Bishop said.
The minister encouraged the US president to attend an Asian forum later this year and lend an ear to global political leaders.
"I think the East Asia Summit later this year would be a great opportunity for President Trump to come to the Philippines, where it will be held, and for the other leaders to make their views known at that time."
On the simmering South China Sea dispute, Ms Bishop said Australia was not a claimant state and recognised competing claims of those who were.
The minister urged nations to de-escalate tensions and negotiate peacefully while persevering with rights to freedom of flight and navigation.
