Well it's all fine and dandy in theory Kosh, but China and The West (of which Australia is more or less a part) are what's reffered to as rivals, both economic and otherwise (meaning ideological, military and broadly just rivals). China is no longer the enemy, but they're not friends either. They're the competition. And it's not good to go around helping the competition.
Personally, I like it that way, it keeps a balance of power. Hell, I'm already frightened by the power China might/will aquire in a few decades time, at least this way there is a counter-force. The problem is not, I think, that anyone afraid that China is going to attack Australia or any other country, but rather that China is seen as a rising giant, one that potentially threatens to eclipse the West, and no one is in any particular hurry to help them along.