Born on Tanga Island, New Ireland Province to Bai Chan (陳柏), a trader from Taishan, China, Julius Chan was educated in Australia and began to actively be involved in politics in the 1960s. He was Deputy Prime Minister three times (1976, 1985, 1986), and the minister of Finance (1972-77, 1992-94), Primary Industry (1976), and External Affairs and Trade (1994). He became Leader of the People's Progress Party from 1970 until 1982, when he became the leader of the Minority Party. He was knighted as the commander of the civil division in 1981, and appointed as Member of the Privy Council the next year.
His re-election campaign in August 1994 had a dual platform: national security and appropriate economic management. In l997, the Chan government's million-dollar contract with Sandline International, a mercenary organization, to counter separatist guerilla on Bougainville caused an immense public protests and a 10-day mutiny by the underpaid national army. On 20 April 1997, during an inquiry that started on 21 March that caused five ministers to resign, the Parliament defeated a motion calling on Chan to resign (59-38). However, the next day, Chan and two ministers chose to step down.
Chan is married to Lady Stella in 1966 and has four children: Vanessa Andrea, Byron James, Mark Gavin, and Toea Julius.