Australia’s 24th prime minister Paul Keating has declared the nation has “lost its way” amid tensions with China at a National Press Club speech.

“China is simply too big and too central to be ostracised,” he said.

Despite being a “great admirer” of the former leader, Jim Wilson took issue with Mr Keating’s stance.

“I simply do not agree with his comments at the Press Club this arvo.

“Mr Keating’s ignoring the elephant in the room here – the fact that China’s economy will be 250 per cent the size of the US’ in the years ahead is irrelevant.

“President Xi Jinping has made it clear as day that China does not respect Australia sovereignty.”

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Image: ABC