Beijing’s top local diplomat has denied a Chinese warship turned on its sonar and injured an Australian navy diver while shadowing HMAS Toowoomba last year, instead suggesting Japan was to blame for the incident.

During a wide-ranging press conference to mark the new year, Ambassador Xiao Qian also revealed China had lodged a diplomatic protest over Australia’s note of congratulations for Taiwan’s new leader, denied Beijing paid off Nauru, and gave no firm indication when the final trade sanctions would be lifted against Australian exports.