Mr Robb was trade minister from 2013 onwards. He stood down before the 2016 election at which he retired.

A source familiar with events at the time said it was agreed after Australia signed an FTA with China in 2015 it was deemed "polite to leave an elegant distance between the deal with mainland China and doing a deal with Taiwan", which Beijing regards as a renegade province.

A subsequent concern was that engaging with Taiwan could unsettle a more lucrative deal with Hong Kong, due for completion early next year.

Australia does not recognise Taiwan as a sovereign state under its One China policy and, according to the department website, "strongly supports the development, on an unofficial basis, of two-way economic and cultural contacts".

Last week in the Senate, after Prime Minister Malcolm Turnbull had discussed the progress of the FTA on Sunday while in Hong Kong, Senator Leyonhjelm asked government Senate leader George Brandis what had happened to the Taiwan policy.

Senator Brandis said Australia already enjoyed a healthy trade relationship with Taiwan, which was Australia's 14th largest trading partner in 2016 and eighth largest goods export market for 2016-17.

"The government is open to the possibility of pursuing better market access arrangements and closer economic co-operation with Taiwan," he said. "Any arrangements Australia concluded with Taiwan would be consistent with our One China policy," he said.

Senator Leyonhjelm said he was concerned at Australia again kowtowing to Beijing.

"Taiwan is a free and democratic country, subject to the rule of law," he told The Australian Financial Review. "China is none of these. At the very least, Australia's dealings with Taiwan should be no less positive than our dealings with China. Given we have a FTA with China, we should obviously have one with Taiwan, too.

"I'm concerned that the government has caved in to pressure from China and that an FTA with Taiwan is no longer on the agenda. While trade with China will always be greater, we should not abandon our values and principles."