China-Australia relationship is one of the most important bilateral relations in the Asia-Pacific region. A great change has occurred since the formal diplomatic relation between Australia and China was established in 1972. In the early period of the Cold War, from 1950s to 1960s, China and Australia were even involved in indirect conflict and then entered a situation of mutual isolation. Currently, China and Australian relation can be described as interdependence and mutual beneficial in economic sphere. But, owing to the great gaps in the fields of mainstream cultural and political system, there are some misunderstanding and misjudgment between the two countries especially in the area of military and security strategic postures. In the near future, with the rise of China, both governments of Australia and China should recognize these kinds of gaps,be concerned about the key interests of both sides, and thus extend the scope of cooperation. <<