In a keynote address at a conference in Sydney, the Seven Network chairman said Chinese bloggers were uneasy about Australia's attitude towards their country.

"It is within these blogs that they talk of the concern that Australia has chosen between China and America. We do not need to do so but the impression was created," Mr Stokes told the Australia in China's Century Conference.

"It's within these blogs that the feeling towards our country has changed."

He said Chinese leaders had always been courteous - unlike Australian politicians.

"(Australians) call for a change in the systems in China. They do this publicly in China. It's difficult to imagine anything more disrespectful than someone coming to your own home and asking you to change your decor."

The billionaire said Australia's decision last year to station US troops in Darwin had angered China.

"We give the impression that we're joining sides. We never had to join sides. China always accepted our relationship with America," he said.

"Allowing the troops in Australia has just aggravated something that was accepted before and made it more dominant."

Losing the edge

Mr Stokes said Australia had "gone off track" and he lamented the decline of Australia's educational appeal, when Chinese students filled Australian universities.

"Education was a major export industry. Our number three export in value after coal and iron ore," he said.

"We managed to make it so difficult between our bureaucracy and fear of security, that it is just so much easier to go to America where they not only offer the courses we used to offer, but they've allowed a three-year work experience after they've graduated."

Mr Stokes encouraged business leaders and politicians to work towards an outcome that was good for both nations.

"China has never placed any special conditions on our involvement. China has sought to invest in the resources it buys, it has sought to partner us as a food supply, to embrace food security," he said.

"The sooner we get back to being concerned only with what works for Australia and for China, the longer and better the opportunities will be."

In the future, other nations will challenge Australian trade with China by offering the same goods at “far more competitive prices”, he said.

“We will want to be in a position where our prices are not only the reason we trade with China because if price is the only reason, we will lose.”

BusinessDay with AAP