China a lonely state, says former PM

Former prime minister Paul Keating has urged a review of Australia's foreign policy to include a more positive strategic engagement with China.

Australian ambassadors are returning home to take part in a three-day conference crafting the nation's first foreign policy white paper since 2003.

"If Australia were to have a positive strategic policy of engagement with China rather than a negative one, our influence on China's behaviour would be much greater than it is today," Mr Keating told Fairfax Media on Thursday.

There was an assumption in Australian foreign policy the US would continue to be the dominant power in the region.

"China is fundamentally a lonely state and looks to Australia as a supplier of much of its raw materials and therefore its development," Mr Keating said.

"How much iron ore has it got to buy before we treat it with strategic regard?"

The Greens say Australia should also reconsider its alliance with the US.

"We want the ANZUS alliance revisited quite simply because we don't trust the guy with his finger on the button," Senator Peter Whish-Wilson said referring to US president Donald Trump.

"He's not the kind of person I think we should be having a relationship with."

However, Liberal senator Zed Seselja said the US was and would continue to be Australia's most important strategic partner.

"We've heard from a number of Labor figures in recent times that we should somehow be distancing ourselves from the United States," he said.

"I don't accept that."

Labor senator Jenny McAllister said China would play an increasingly important role in the region and Australia's good relationship with its northern neighbour stood only to gain.

"Our view is that it is in all of our interests that we have a strong dialogue between the United States and China and that Australia is in a good place to play a role in encouraging that," she said.