"The problem is this is a red-line issue for China. This is the thing they will go to war over. This is a question of national honour, dignity and legitimacy of the Communist Party of China," he said.

Disturbing peace

Other experts, such as the Lowy Institute's Aaron Connelly, said Beijing would likely be nervous about Mr Trump disturbing the relative peace in US-China relations.

"This was a major element for the status quo in US-China relations and it appears Trump's not going to abide by that," he told Sky News.

Mr Xenophon and Greens Leader Richard Di Natale both say Mr Trump's latest provocation shows Australia cannot "blindly follow" the US in escalating tensions between the two superpowers.

"Donald Trump needs to pick his battles otherwise the US could find itself in a conflict that could have been avoided and Australia could find itself dragged into that conflict," Mr Xenophon said.

Senator Di Natale said: "These comments signal a need for Australia to rethink its slavish devotion to the US alliance before Trump's Twitter wars set off a real war. We're going to end up tied to policy decisions concocted on the fly and announced via Twitter."

Bridge builder


Senator Xenophon said Mr Turnbull could not keep avoiding taking a stance on Mr Trump's statements and we had to choose between our trade relations with China and the US-Australia alliance.

Both Senator Xenophon and Senator Di Natale said Australia was without an independent foreign policy, and Senator Xenophon said there was the opportunity for Australia to be a peacemaker.

"Given our relationship with China and the US, I think Australia does have a role to be a mediator and a bridge builder," he said.

Professor Bisley said this was unrealistic. "Australia is not in a position to be a peacemaker. That would not be anything we're even vaguely in a position to do from a credibility point of view, from a position point of view, that's a non-starter," he said.

Foreign Minister Julie Bishop has signalled to China that Australia will stick with the One China policy, whereby formal relations are maintained with China and unofficial links with Taiwan.