Since the end of the Second World War, the relations between Australia and China have been important for the economic development, security, and stability of the Asia-Pacific region. In line with the developments and changes seen during the Cold War period, Australia has adopted the policy of a “Two Chinas” and then “the One China” since the 1970s. Political and ideological conflict has been replaced by bilateral economic and commercial interests by way of the rising economic and trade relations between Australia and China. However, in the post-Cold War period, especially with its WTO membership, China has gained the ability to further increase its economic power and become increasingly tougher in its foreign policy. Australia, which has begun to regard China's military expansion in the South China Sea as a threat to its national security, has been inclined to participate in the balance policy and security pacts developed by the US that has similar security concerns against China in the region. However, the fact that rising China plays an important role in Australia's economic development causes a long-standing "dualism" between China and the US in Australian foreign policy. Being aware of China's historical foreign policy approach and the "Grand Strategy", which has been more visible with its increasing military and economic power in the new period, Australia has started to adopt security approaches. It is seen that Australia acts to improve relations with China economically and to strengthen its relations with the US in terms of security. In this context, this article provides an in-depth look at Australia's current diplomatic relations with China within the framework of China's Grand strategy and analyzes the factors that could set the tone of those relations. Thus, possible future scenarios between the two countries clarify.