After several years of significant diplomatic strain, the relationship between Australia and China has entered a period of stabilization. According to a report published by the Lowy Institute, former Australian ambassador Graham Fletcher characterizes the current state of affairs as a "good enough" baseline. Fletcher, who served as the top Australian diplomat in Beijing from 2019 to 2023, suggests that while the relationship is no longer in a state of acute crisis, it has settled into a more realistic and pragmatic footing.

The assessment highlights that the current diplomatic environment is a departure from the downturn that began in 2017, during which trade disputes and political friction dominated the bilateral agenda. While the relationship has improved, Fletcher notes that the current level of cooperation does not fully align with the broader strategic ambitions held by Beijing. The report implies that both nations have moved toward a more managed approach to their differences, prioritizing stability over the previous cycle of escalation. By moving to this "good enough" status, both Canberra and Beijing appear to be prioritizing economic and diplomatic predictability, even if significant underlying strategic competition remains. The report serves as an expert evaluation of how the two countries have navigated the transition from open confrontation to a more cautious, albeit functional, engagement.