The United States' approach to China might be hurting international trade but Scott Morrison says President Donald Trump is trying an "unconventional" way to get a better deal.
He also says Australia carefully manages the sensitivities of its relationships with both countries.
Trade tensions with the United States and China are at a low point after President Trump slapped billions of dollars of tariffs on Chinese goods.
"What I believe the US wants is a better deal for the United States in the international trading environment," Mr Morrison told a luncheon on Thursday.
"You could say that they are taking a rather unconventional approach to how that can be achieved.
"But I would muse that the president would argue that taking a conventional approach hasn't worked out too well for them. And his mandate from his election is to change that up."
China's regime has been in the spotlight after Interpol chief Meng Hongwei quit while being detained over a bribery investigation.
Mr Morrison said it was important to deal with China in a measured and constructive way.
"I wouldn't describe them as difficult, I would describe them as an important relationship which we just manage carefully," he told 3AW on Thursday.
"I'm not one for going around poking people in the eye."
The prime minister said Australia shared deep values with the US, while there was a constructive strategic partnership with China.
"We've got our differences," Mr Morrison said.
"The reality is we have a very constructive commercial relationship with China. We don't share all the same values and beliefs.
"It is not our job to go around pushing the economic interests of the United States or the economic interests of China."
Australia can play a positive role in soothing US-China relations, Mr Morrison said.
