Australia on Thursday declined Beijing's proposal to work together to counter U.S. tariffs, saying instead it would continue to diversify its trade and lower its reliance on China, its largest trading partner.

"We are not going to be holding hands with China in respect of any contest that is going on in the world," Deputy Prime Minister Richard Marles told Sky News, referring to the Chinese ambassador's proposal for countries to "join hands" on trade.

"We are not doing that. What we are doing is pursuing Australia's national interests and diversifying our trade around the world."
He said Australia would build its economic resilience by strengthening trade ties with the European Union, Indonesia, India, Britain and the Middle East.
"Under the new circumstances, China stands ready to join hands with Australia and the international community to jointly respond to the changes of the world," Xiao said.