Until the election of a new Labor Government in Australia in May 2023, the relations between China and Australia had deteriorated markedly, deeply affecting the prospects of educational links between the two countries. While the relations appear to have now improved somewhat, many of the tensions persist. This paper provides an historical overview of the relations between China and Australia, as a way of showing how despite hostile political attitudes the possibilities of friendly relations at people-to-people level have always persisted. This suggests that even within the context of enduring geopolitical tensions, the broader potential of international education should not be overlooked. However, to realize this potential, it is important to consider how internationalization’s moral and political goals of intercultural communication and understanding might be more effectively promoted, beyond its market orientation.