Govt to set up new Aust-China foundation

The Morrison government will establish a new foundation to help soothe strained ties with China following a raft of diplomatic tensions with the global superpower.

The National Foundation for Australia-China Relations will have more money than the existing Australia-China Council to fund projects strengthening links between the two countries.

It will also widen the focus from projects about education, culture and the arts to also include agriculture, infrastructure, health, the environment and energy.

Australia will also send a new ambassador to China with Graham Fletcher set to replace Jan Adams, who has been in the role since 2016.

Foreign Minister Marise Payne said the foundation would be a high-profile platform for promoting ties with China.

"It will harness efforts of the private sector, peak bodies, NGOs, cultural organisations, state and federal agencies and the Chinese-Australian community to turbo-charge our national effort in engaging China," she said on Friday.

Australia's relationship with China has been tense recently, with concerns about foreign influence leading to Huawei and ZTE being banned from the 5G network rollout.

Australia has also sought answers about a slowdown in coal exports to China, but has been careful not to link the issue to diplomatic payback.

The South China Sea has also been a bone of contention along with China's rising influence in the Pacific.

Senator Payne said there were many areas Australia and China shared common objectives and could maximise cooperation.

"We have different perspectives on some important issues and the new foundation will encourage and enable considerable constructive discourse and engagement between our two countries," she said.

Former Liberal MP Warwick Smith, who is currently chair of the council, will lead the foundation while board members are yet to be named.