Scott Morrison believes it would be inappropriate for him to meet with China's new ambassador to Australia while Beijing's diplomatic freeze continues, arguing the Foreign Minister's door is open for any talks.
The new envoy to Canberra, Xiao Qian, has struck a more friendly and conciliatory tone than his predecessor, two months into his new posting in Canberra.
Relations between the two countries have been incredibly strained in recent years, with the Chinese government slapping a trade sanctions on a range of products in retaliation for Australia's advocacy on matters such as an investigation into the origins of COVID-19.
Last month, a Chinese warship pointed a military grade laser at an Australian surveillance aircraft in the Arafura Sea, north of Australia — something the Morrison government said put Australian Defence personnel lives at risk.
The new ambassador met with Foreign Minister Marise Payne a couple of weeks back, but it has since been revealed he did not secure an audience with the Prime Minister.
When asked why he did not clear time in his diary, Mr Morrison said it was for the same reason Australian ambassadors to China do not hold meetings with President Xi Jinping.
"Ambassadors don't regularly meet with heads of government, and that is the case in Australia as well," Mr Morrison said.
"On occasions we do, but when we have a situation where China has completely blocked any ministerial, minister-to-minister dialogue between Australia and China, then until those arrangements are removed, and that block is removed by China, well, I think Australians would think it would be very inappropriate for me to engage in that dialogue with an ambassador.
The Coalition and Labor have attacked each other about Australia's relationship with China frequently over the past few years, but Opposition Leader Anthony Albanese would not criticise Mr Morrison for his stance with the ambassador.
"I have not met with the ambassador for China, or indeed, with any other officials from the Chinese Embassy," Mr Albanese said on Saturday morning.
"My Foreign Affairs spokesperson has, Penny Wong, and the Foreign Minister I know and other ministers have, from time to time, had contact with the Chinese Embassy, and that's appropriate.
"But I respect and I support the Prime Minister's decision."
Labor says government has allowed China to muscle in on Australia's backyard
The bipartisanship did not extend to China's growing influence in the South Pacific, following revelations Beijing was seeking to deepen its security and defence ties with Solomon Islands.
Labor accused the government of numerous foreign policies fumbles, which allowed China to muscle in on Australia's backyard.
"That was short sighted, it was aimed again at sending a message domestically without putting our national interest first."
The Labor leader also argued Australia was seen as a pariah on tackling climate change.
"Whilst Australia sits in the naughty corner, with Saudi Arabia and Brazil and some countries going to international conferences, refusing to increase our 2030 target, then Australia's status in the region is undermined by our failure to act on climate change," he said.
"This is an existential threat to many countries in the Pacific."
Mr Morrison rejected the claim that Australia had failed to counter China's desire to expand its influence in the Pacific.
"I think what these events highlight is the reason why our government increased our overseas development assistance to the Pacific by 50 per cent," Mr Morrison said.
"We will respond as a family of Pacific nations, of which Australia is one, New Zealand is another."
Mr Morrison said the government would "ensure there is a keen understanding" of the risks and threats greater cooperation with China would pose.
He said Australia's High Commissioner to Solomon Islands had discussed the matter with Prime Minister Manasseh Sogavare, and talks with other countries would continue over the weekend.
