Since John Howard came to power as Australian Prime Minister in 1996, he has been criticized for his emphasis on Australia-U.S. bilateral security relations and failure in maintaining rapport relations with Asia. However, with rising China, China's actively pursuing economic policy since 2000 as well as the growing momentum in East Asia economic integration, the Howard Government's Asia policy has been witnessed a subtle but identifiable shift, in particular its China policy and Sino-Australian economic interactions. The main purpose of this article is to explore changing Australia's foreign policy behavior toward China, interactions between the two countries and their implications for Asia Pacific, Australia's role between China and the U.S. in particular. As long as Sino-U.S. Relations are not locked in a zero-sum competition, Australia will have a chance to maneuver between the big powers and to maximize its national interest. Otherwise, if the two big powers engage in a zero-sum game, minor and middle powers will be in the worst scenario, have to choose side. No matter which side they choose, they can hardly escape from punishment from the other side.