What Licence class do you have? Also did you move your Licence to GD before you tried to renew it?

For bigger vehicles such as truck licenses you need an annual medical check.

You can walk to it from the subway stop at Wujiaba

@rejected_goods I know of a similar case (child of a local Mum expat Dad) who came back to China on a foreign passport with a visa. The PSB in Kunming extend the visa once, but the next year they followed the law and did not renew the visa.

Regarding renouncing citizenship, you have to speak to the PSB as they are in charge of nationality issues and they can tell you what documents you need.

第十六条　加入、退出和恢复中国国籍的申请,由中华人民共和国公安部审批。经批准的,由公安部发给证书。

The Chinese nationalities law is quite similar to many other countries law. The main difference is that they do not allow multi nationalities. I read that this was partially due to the large amounts of ethnic Chinese in SE Asia who were also local citizens.

第三条　中华人民共和国不承认中国公民具有双重国籍。

Also different to the American situation is that being born in China does not make you a Chinese citizen, unless you have one parent who was a Chinese citizen.
第四条　父母双方或一方为中国公民,本人出生在中国,具有中国国籍。

So as in many other countries being born in the country with a local parent(s) means you are a citizen and don't need a visa.

Chinese children can have their nationality revoked if their parents apply (but the kids can apply for it back later.)
第十三条　曾有过中国国籍的外国人,具有正当理由,可以申请恢复中国国籍；被批准恢复中国国籍的,不得再保留外国国籍。

Having a foreigner as a close relative is an accepted reason to apply for revoking Chinese citizenship.

第十条　中国公民具有下列条件之一的,可以经申请批准退出中国国籍：

　　一、外国人的近亲属；

Citizenship is not linked to a Hukou, no Hukou means no ID card or Passport,,

Once you get her on your wifes Hukou then the PSB will no longer issue her an exit/Entry permit. She will have to get a Chinese passport to leave China. If you want to get her into Australia from China direct you won't be able to as the Aussies know she is an Aussie and won't issue her a visa for Australia.

Instead you could go to Thailand or any other country where Chinese can get a visa on arrival, then when you land in that country use her Aussie passport to continue your journey to Oz.

Unless you never plan to live in Oz for the next 18 years I wouldn't get her on the Hukou.