Australia and China's relations have deteriorated, leading to trade sanctions from China, following Australia's protest against the 'One Belt, One Road' agreement and the introduction of the security consultative body 'AUKUS' with the US and UK. The dispute has resulted in China halting imports of Australian goods like iron ore and wine, but Australia's high-quality iron ore and coal exports to China have mitigated the damage. The conflict stems from Australia's alignment with the US and human rights issues, as well as anti-Chinese sentiments in Australia. Despite China's power superiority, Australia's belief in resisting Chinese influence and the strategic importance of high-quality Australian exports have kept the country resilient.