China’s new ambassador has delivered a gentle warning about managing differences, telling an audience at Parliament House “courtesy demands reciprocity”. Liu Jinsong, a US-educated career diplomat, opened his address on Thursday by remarking the Murrays coach that drove him from Sydney to his posting in Canberra had “Chinese elements everywhere”, touting it as a show of how deeply connected the Australian and Chinese economies are. “China-Australia trade and economic co-operation is shifting gear, with traditional drivers remaining strong and new sources of growth emerging,” he told the Australia-China Business Council event.

Mr Liu described relations as having “returned to a right track” after a years-long trade war under the former Coalition government. But he said “concerns” remain. “These concerns must be addressed on an equal, balanced and amicable basis,” he said. “Only when we hold our own and our partner’s core interest and concern in equal regard can dialogue be meaningful and co-operation … form foundation.”While the trade relationship has stabilised, most on Capital Hill say strategic competition with China has only intensified, with senior ministers often stating Australia is in “a permanent state of contest in our region”.

That has driven record peacetime defence commitments and a deepening of ties across the Pacific, as Canberra scrambles to stop Beijing securing a military toehold in the region. As Mr Liu spoke on Thursday, fresh reporting emerged that suspected Chinese spies used professional networking platform LinkedIn to try getting close to Australian officials, including an Australian Federal Police commander. An ABC investigation found the same spy network groomed Alexander Csergo – the Australian businessman convicted of reckless foreign interference last month.

The Chinese embassy has rejected the accusations, which come against a backdrop of intelligence officials increasingly warning of Beijing-backed attempts to infiltrate Australia’s critical infrastructure.