Australia still needs to depend on America's global leadership because China blocks action or fails to step up, the prime minister's chief bureaucrat believes.

Prime Minister and cabinet department secretary Michael Thawley believes China is not willing or able to play a serious global leadership role.

"Almost every issue that comes up, it won't be solved unless the United States is prepared to put some effort into it," he told a leadership conference at the Australian National University on Tuesday.

"China will get in the way or get out of the way."

Mr Thawley's assessment came as Prime Minister Tony Abbott and US ambassador John Berry were lauding the strength of the alliance at the embassy's Independence Day celebration.

The two countries were natural partners because of their shared values, Mr Abbott said.

"America will have more important friends, occasionally America will have more useful friends," he told the crowd at the embassy in Canberra.

"But America will never have a more dependable friend than Australia."

America's leadership was as necessary as ever and the country would have Australia's gratitude and support, the prime minister said.

Mr Thawley said Australia had to increase its economic weight and military power to help the US maintain its leadership role, "suitably influenced by us".

Australia needed to "keep calm and not get hysterical" as it faced a long-term struggle for influence in this part of the world, he said.

Mr Berry noted Australia was second only to the US in contributing to the fight against Islamic State extremists in the Middle East.

The fight against terrorism could only be won if "we convince the hearts and minds of the next generation to choose a better path", he said.

"America is very grateful to have you shoulder to shoulder with us every step of the way," Mr Berry said.

Former foreign minister Bob Carr echoed the view that China would not step up any time soon, saying there was restraint in Chinese foreign policy and the country was reluctant to see itself as the number two power in the world.

"They see such mismatch between the challenges, especially in western China, and the notion that China can be a world leader," Mr Carr told the ANU conference.

Opposition foreign affairs spokeswoman Tanya Plibersek said Australia should be in a strong position to advocate for room to be made in international architecture to accommodate the rise of China.

She said it may have been better for China to be part of the International Monetary Fund and the Asian Development Bank rather than create its own Asian Infrastructure Investment Bank.

For weeks the papers have been full of articles on the FTA with China ..... or the TPP with the Yanks.

Abbort & his cronies have already allowed China to bring in it's own workers for any project over $150 million

so where's the shirt fronting going on?

The Yanks are heavily involved with China as well.

Most of Apples products are made in China.