Australia missing out on China free trade agreement

"The Australia-China relationship is obviously the most important trading relationship that we have, and if we're able to include a free trade agreement with China I think that would just cement the relationship even further," she added.

New Zealand, which commenced free trade agreement talks with China at the same time as Australia in 2005, managed to seal the deal in 2008 and has since seen trade treble, with 90 percent of New Zealand products now getting into China duty-free, said Bishop.

She added that the Australian government had rebuffed an offer from the Hong Kong administration to commence FTA negotiations with China on their behalf.

The shadow minister also spoke about plans, if elected, to send more Australian universities students to study in the Asia-Pacific region through government-funded scholarships.

"I cannot think of a better way to demonstrate our deep engagement in the region, to underpin our bilateral relationships with important trading partners and friends like China than have young Australians spend time in the region."

"That way we will have a large body of young people in this country who will become Asia-literate, who will develop second language skills, and will come back to Australia after their experience with new ideas, new perspectives, new insights to add to the productivity of this country," she said.

Asked if Australia would have to choose between its relationships with China and the United States, Bishop said it was a "false debate".