After the establishment of the People's Republic of China ("PRC") in 1949 and the retreat of the Republic of China ("ROC") government to Taiwan, Australia did not recognise the PRC.
The United Kingdom proposed in 1949 that Britain, Australia and New Zealand should simultaneously recognise the new government.
However, the Australian and New Zealand governments were concerned about electoral repercussions at a time when Communism was becoming a more topical issue, and did not do so immediately.
Although Ben Chifley's Labor government preferred to be realistic about the new Chinese government and would have supported its admission to the United Nations, it lost the election.
The British government went ahead with the recognition of the PRC alone in 1950, but the United States withheld recognition.
The Korean War further solidified the United States' position of supporting the Republic of China regime in Taiwan instead of the PRC.
Wavering between its two traditional allies, Australia chose to follow the lead of the United States, rather than Britain, Sweden, Denmark, Finland, Norway, France, Canada, and Italy (all of which switched recognition to the PRC before 1970).

However, from 1950, Australia refused to accept ambassadors from the ROC (the mission was allowed to remain but, until 1959, was headed by a chargé d'affaires).
Likewise, until 1966 Australia did not send an ambassador to Taiwan.
From as early as 1954, the Australian government's Department of External Affairs was recommending the recognition of the PRC, but this advice was not politically accepted.
During the Cold War, Australia's strategic alignment swung further towards the United States.
While the Labor Party's official policy from 1955 was that Australia should follow the examples of Britain and France in recognising the PRC, on the basis that the ROC was unlikely to recover the mainland, the Liberal Party-led Coalition played up the perceived threat of a Communist China for electoral advantage, including the support of the anti-Communist Democratic Labor Party.
As part of this political strategy, Australian Prime Minister Harold Holt explicitly recognised the continuing legitimacy of the ROC government in Taiwan in 1966, by sending an ambassador to Taipei for the first time.

The government of William McMahon sought to improve non-official relations with China, in areas such as trade and culture, but China was not receptive to such exchanges without diplomatic recognition.

As opposition leader, Gough Whitlam visited China in 1971 (before Henry Kissinger's historic visit on behalf of the United States), and in December 1972, after Whitlam's victory in that year's federal election, Australia established diplomatic relations with the People's Republic of China, and Australia ceased to recognise the Republic of China government of Chiang Kai-shek in Taiwan.
Although Whitlam's decision was informed by warming relations between China and the West generally, especially the United States, Australian diplomatic relations with the People's Republic predated that of the United States by seven years.
The establishment of relations with "Red China" roused great excitement in Australia.
Stephen Fitzgerald became the first Australian ambassador to the People's Republic of China, and Wang Guoquan was the first PRC ambassador to Australia.

Since the Chinese economic reforms initiated by the late Deng Xiaoping, China has benefited from significant investment in China by Australian companies (for example, future Prime Minister Malcolm Turnbull had set up the first Sino-foreign joint venture mining company in China in 1994), while Australia has benefited from the Chinese appetite for natural resources to modernise its economy, infrastructure and meet its growing energy demands.
In 2009, it was estimated the trade and investment with China brought benefits of close to $4000 per Australian household; in 2011, this was estimated to be A$10,500 per household per year.

China and Australia were the final two bidders for the 2000 Olympics.
Australia subsequently won and Sydney host
After the establishment of the People's Republic of China ("PRC") in 1949 and the retreat of the Republic of China ("ROC") government to Taiwan, Australia did not recognise the PRC. The United Kingdom proposed in 1949 that Britain, Australia and New Zealand should simultaneously recognise the new government. However, the Australian and New Zealand governments were concerned about electoral repercussions at a time when Communism was becoming a more topical issue, and did not do so immediately. Although Ben Chifley's Labor government preferred to be realistic about the new Chinese government and would have supported its admission to the United Nations, it lost the election. The British government went ahead with the recognition of the PRC alone in 1950, but the United States withheld recognition. The Korean War further solidified the United States' position of supporting the Republic of China regime in Taiwan instead of the PRC. Wavering between its two traditional allies, Australia chose to follow the lead of the United States, rather than Britain, Sweden, Denmark, Finland, Norway, France, Canada, and Italy (all of which switched recognition to the PRC before 1970).
However, from 1950, Australia refused to accept ambassadors from the ROC (the mission was allowed to remain but, until 1959, was headed by a chargé d'affaires). Likewise, until 1966 Australia did not send an ambassador to Taiwan. From as early as 1954, the Australian government's Department of External Affairs was recommending the recognition of the PRC, but this advice was not politically accepted. During the Cold War, Australia's strategic alignment swung further towards the United States. While the Labor Party's official policy from 1955 was that Australia should follow the examples of Britain and France in recognising the PRC, on the basis that the ROC was unlikely to recover the mainland, the Liberal Party-led Coalition played up the perceived threat of a Communist China for electoral advantage, including the support of the anti-Communist Democratic Labor Party. As part of this political strategy, Australian Prime Minister Harold Holt explicitly recognised the continuing legitimacy of the ROC government in Taiwan in 1966, by sending an ambassador to Taipei for the first time.
The government of William McMahon sought to improve non-official relations with China, in areas such as trade and culture, but China was not receptive to such exchanges without diplomatic recognition.
As opposition leader, Gough Whitlam visited China in 1971 (before Henry Kissinger's historic visit on behalf of the United States), and in December 1972, after Whitlam's victory in that year's federal election, Australia established diplomatic relations with the People's Republic of China, and Australia ceased to recognise the Republic of China government of Chiang Kai-shek in Taiwan. Although Whitlam's decision was informed by warming relations between China and the West generally, especially the United States, Australian diplomatic relations with the People's Republic predated that of the United States by seven years. The establishment of relations with "Red China" roused great excitement in Australia. Stephen Fitzgerald became the first Australian ambassador to the People's Republic of China, and Wang Guoquan was the first PRC ambassador to Australia.
Since the Chinese economic reforms initiated by the late Deng Xiaoping, China has benefited from significant investment in China by Australian companies (for example, future Prime Minister Malcolm Turnbull had set up the first Sino-foreign joint venture mining company in China in 1994), while Australia has benefited from the Chinese appetite for natural resources to modernise its economy, infrastructure and meet its growing energy demands. In 2009, it was estimated the trade and investment with China brought benefits of close to $4000 per Australian household; in 2011, this was estimated to be A$10,500 per household per year.
China and Australia were the final two bidders for the 2000 Olympics. Australia subsequently won and Sydney host
Australia–China relations