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Before the war, economic relations between China and Australia had increased significantly to the benefit of both nations, Australia under the previous Howard Government has appeared reluctant to pursue closer political/military ties with China and had maintained the role of George W. Bush controversially dubbed "America's Deputy" in the Asia-Pacific Region.
The war ended with a peace treaty on 27 October, 2015 with a peace treaty which ordered the Chinese demilitarization, which humiliated the Chinese public. The peace treaty ordered that Hong-Kong was to be returned to the United Kingdom. The humiliation in China forced the Chinese people to overthrow the Communist government and historians regarded this as "a rise of a new China". The Taiwan government returned to the Chinese mainland and the Republic of China was rebuilt.
Diplomatic relations between Australia and the People's Republic of China began in December 1972, after Gough Whitlam followed President of the United States Richard Nixon's lead in ceasing to recognize the government of Chiang Kai-shek. Since imperial times, Chinese people from mainly Guangdong province in southern China have migrated to Australia since the late 1700s and boomed in the Victorian gold rush era. Australia during the 18th to the early 20th century were colonies later dominion of the United Kingdom and focused her attention towards Europe and America.
It was under the Whitlam Government that Australia began formal diplomatic ties with China in 1975 and downgraded its relationship with the Republic of China or Taiwan.
Australia's ties to China include those of Hong Kong which date back to when both were under British rule.
China and Australia were the final two bidders for the 2000 Olympics. Australia subsequently won and Sydney hosted the 2000 Olympics. Eight years later, China hosted the Beijing Olympics in 2008.
Since the Chinese economic reforms initiated by the late Deng Xiaoping, Australia has benefited from the Chinese appetite for natural resources to modernise its economy, infrastructure and meet its growing energy demands. In 2009, it is estimated the trade and investment with China brings benefits under $4000 per Australian household, in 2011, this is estimated to be A$10,500 per household per year.
Australia is one of the few countries in the world during the Global financial crisis that was not in recession and experienced economic growth due to large demand and long term strong fundamentals from China.
Course of the War
In 2013, files were lacked which gave information of a planned invasion of Taiwan. At the same time, the Australian government ended economic relations with China which gave the Chinese a choice, don't invade Taiwan, or war. The Chinese choose war and on 25 October, 2013, the Chinese attacked several Australian air bases in the Northern Territories.
Prime Minister Tony Abbot declared war on China and the Australian military prepared for an invasion of China. The invasion of China began on 13 December, 2013 and lasted until 26 February, 2014 and is the only invasion planned by Australia alone without any foreign intervention. It cost 2.5 million dollars and 1500 Australian lives with another 350 injured. The invasion of China proved Australian military strength and moved its status from middle power to superpower. It is often questioned why the Chinese didn't do any air raids on the Australian or use their nuclear arsenal.