Greens leader Adam Bandt has warned Australia has a “lot to lose” if tensions between China and the United States fail to simmer down as he called on the Albanese Government to further push de-escalation.

China has recently announced it would wind back live-fire military drills around Taiwan launched in response to US House Speaker Nancy Pelosi’s visit to the island.

Australia joined Japan and the United States in leading calls for a de-escalation in tension, placing the blame on China for its “disproportionate and destabilising” actions.

Mr Bandt welcomed the Albanese Government’s recent attempts to prevent conflict but stressed that Australia’s interests must “be put first” when calling for de-escalation given the close ties with both Washington and Beijing.

Taiwanese military personnel during a military exercise, which simulates China's People's Liberation Army (PLA) invading the island. Picture: Getty Images

“Australia has a lot to lose as does the world but Australia especially if there is conflict between the US and China,” Mr Bandt told Sky News Australia’s Tom Connell.

“And we’ve for some time been concerned that there hasn’t been a strategy towards de-escalation, but I’ve noticed that recently the Australian government has started talking more about de-escalation.

“Australia has to look out for its own interests and Australia’s interests have to be put first when considering what is our appropriate intervention.”

China has accused the United States of having “fired the first shot” in the renewed cross-strait tensions.

Adam Bandt has warned Australia has a “lot to lose” if tensions between China and the United States fail to simmer down. Picture: Martin Ollman

Beijing’s Ambassador to Canberra also demanded Washington “take full responsibility” for the subsequent escalation of tensions on Wednesday.

But when asked whether he would join the government and opposition in recognising Beijing had ratcheted up its aggression, Mr Bandt dodged questions and reiterated his concerns for the “rising tensions between the US and China”.

“How the US wants to conduct its foreign policy and manage its relationship with China is obviously a matter for them,” he said.

“For a long time it was only the Greens who were raising concerns about the human rights approach of the Chinese government.

“Of course we share the concern about rising tensions but I guess this is where we take a different approach to Peter Dutton whose approach is much more belligerent.”

China’s recent drills also drew Tokyo into the potential conflict as five live missiles were fired across Taiwan into waters claimed by Japan.

But with fears of a potential war erupting involving China and the United States, Mr Bandt raised concerns that efforts to address the “climate crisis” could also be sacrificed.

He said a failure to de-escalate could result in China “suspending its cooperation” on climate change despite Beijing’s continuous record emissions.

“The big challenges the world is facing including the climate crisis are going to require both the United States and China if we’re to solve them,” the Greens leader said.

“There’s also talks about China now potentially suspending its cooperation on climate issues, this is why Australia should play a role together with other powers.”

While Beijing announced it would end its military wargames, China’s Eastern Theatre Command has indicated “war preparation” would continue.

A spokesperson for the People’s Liberation Army said the Command would continue to follow developments in the Taiwan Strait and undergo ongoing “training for war preparedness”.