Australia-China Huang Xiangmo Chinese lobbyist blocked communist party
(Image: AAP/Lukas Coch)

One of Australia’s best-credentialed China diplomats Graham Fletcher has been appointed as Australia's new ambassador to China in part of what is being described as a major China “reset”.

Along with Fletcher’s appointment, the government has unveiled a plan to provide $44 million to the newly formed National Foundation for Australia-China Relations. The foundation will replace the Australia-China Council but retain its head Warwick Smith, former Howard government minister and Macquarie Bank and Seven West executive.