Australia has warned increasing global tensions between the world's two biggest economies is not good for "anyone", as US President Donald Trump slapped fresh tariffs on China's imports.
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The US will impose a further 10 per cent tariff on $US300 billion ($A439 billion) of Chinese goods as of September 1.
Finance Minister Mathias Cormann said this is a potentially concerning escalation in their trade dispute.
"It's not good for the global economy, it's not good for Australia, it's not good for the US or China for that matter," he told Sky News on Friday.
However, Trade Minister Simon Birmingham has encouraged talks between US and China will continue, holding out hope the tariffs won't go ahead.
"We know that global economic growth is already slower thanks to a slowdown in global trading levels," he told ABC's AM on Friday.
Senator Birmingham said it was more important than ever for Australia to score goals in trade with its regional partners.
He is in Beijing for negotiations over the Regional Comprehensive Economic Partnership, which will include 16 Indo-Pacific economies.
He believes the development has sharpened the significance of Australia's negotiations on the RCEP, which accounts for about one third of global gross domestic product.
"It reinforces the critical importance of the talks I'm having here in Beijing on behalf of the Morrison government to advance at least our regional trade agenda, as a real counterbalance to the increased protectionism elsewhere," he said.
Senator Birmingham will on Friday deliver a speech to a Chinese think tank arguing for China to continue engaging in global trade.
Australia wants China to help rewrite the World Trade Organisation rules to better reflect its status as the second-largest economy in the world.
"We want to work with China to boost the participation of all developing and least developed countries in the global trading system," he will tell the Centre for China and Globalisation.
"As China's own experience has demonstrated so vividly, trade is an essential engine of development."
The US has strongly pushed for the WTO rules to be changed so China can no longer claim developing nation status, and Australia has also spoken up.
"There is an opportunity for us to work together to help the WTO better reflect the changing role that emerging economies play, while still accommodating their necessity for continued growth," Senator Birmingham says.
The minister said there is "real momentum" on the RECP, which includes India.
The nation has been tipped as a regional and economic rival to China.
"Neither Australia nor China has (a free trade agreement) with India," Senator Birmingham says.
"The conclusion of RCEP would demonstrate that all of these countries - with their vibrant economic activity and the massive potential they have for future growth - are committed to further openness, and are rejecting the lure of greater protectionism."
Australian Associated Press
