China's ambassador to Australia has warned it will not compromise on the issue of Taiwan, defending the nation's recent live-fire drills as a "justified" reaction to US provocation and refusing to rule out taking the island by force. Xiao Qian also said Labor's election win was a "possible opportunity" for a reset in relations between China and Australia, but the ambassador suggested the federal government should shape more positive views of the regional power and accused the media of fostering negative opinions. The comments at a National Press Club address on Wednesday come amid escalating tensions following visit from US house speaker Nancy Pelosi, resulting in a series of live-fire drills near Taiwan by the superpower. "It's an issue so sensitive to China," Mr Xiao said. "We can be compromised on many other issues, economic issues, trade issues, many other issues. There's absolutely no compromise on the question to Taiwan because it's a question of sovereignty and territory integrity." China has fired 11 ballistic missiles toward Taiwan and has carried out simulated attacks following Ms Pelosi's visit to the island last week. The military drills were a message to nations undermining or opposing the One China policy that Taiwan is part of China. Asked how long the military drills would continue, Mr Xiao said at "a proper time, I think there will be an announcement". The escalating scenario has prompted questions over how China sees Taiwan returning under its rule, and whether it would take the island back by force. But the ambassador said that scenario would only be used as a last resort. "We're waiting for a peaceful unification ... but we cannot - we can never - rule out the option to use other [means]. So when necessary, but compelled, we are ready to use all necessary means," he said. "As to what do we mean by all necessary means? You can use your imagination." Mr Xiao laid the blame solely on the US for spiralling tensions in the region, saying it was first to provoke instability and undermine peace. Mr Xiao also said the future of Taiwan would be decided by China's population of 1.4 billion people, but claimed that the Taiwanese people and officials themselves wanted reunification. READ MORE: Mr Xiao said China did not seek hegemony, a sphere of influence, expansion or a new international order, but warned the nation's relationship with the US was at a "critical juncture". He started his address telling Australia's new government that China would not interfere in its relationships with other countries. "China's policy of friendship and cooperation towards Australia remains unchanged and objective and rational perception of Australia, China and a positive and pragmatic policy towards China. Fundamentally significant for a long term stable and predictable partnership between China and However he pushed for the federal government to adhere to the One China policy in "deeds" as well as "words". "This commitment should be not only words, but also in deeds. Not only in name, but also in essence. And it should be practised with absolute sincerity, but without discount." He said the federal government could improve the public's views of China in how it controls information, and accused the media of reporting only negative news stories about China that influenced public opinion. "The policy adopted and the information released by the government do have direct influence on the attitudes of the public," Mr Xiao said. "If the government of our two countries adopt positive policies, and positive measures towards each other, protect and encourage the friendship between our two peoples it will be highly conducive to the healthy and stable development of our bilateral relationship." Acting Prime Minister Richard Marles on Wednesday reaffirmed the federal government's call for a de-escalation in the Taiwan Strait, fearing a catastrophic miscalculation. "It is critical for the region, and it's critical that we return to a much more peaceful and normal set of behaviours in the region and across the Taiwan Strait," he said. Mr Marles would not be drawn on claims made by Taiwan's government that the Chinese drills are simulated attacks on their territory. "People can observe what the drills are, we just call for a de-escalation ... that's what the world needs to see at this moment," he said. He also wouldn't speculate on the connection between Russia's invasion of Ukraine and China's increased aggression, saying the rules-based order was under pressure. - with AAP