Australia is ironing out any "irritations" in its relationship with China after the prime minister admitted there is tension between the two countries.
Trade Minister Steve Ciobo insisted Australia's relationship with its largest trading partner was "very strong".
"We've worked really constructively together to make sure that we iron out any differences or any irritations on both a trade and investment front," Mr Ciobo told reporters on Friday.
"So let's put to bed the notion that the relationship between Australia and China is anything other than very healthy."
But Malcolm Turnbull this week said there was some tension, after concerns were aired in Chinese media about the federal government's new foreign interference laws.
"There are a number of issues that need to be worked through at present, mostly we believe based on some misunderstandings," Finance Minister Mathias Cormann told Sky News.
"And perhaps some misrepresentations about what our motivations are, in making sure our internal political and government processes aren't subject to inappropriate foreign interference."
Defence Minister Marise Payne said Australia "won't take a step back" on the foreign interference legislation.
"If the implementation of laws is required to do that, then we will most certainly pursue those," she told ABC.
Former senator Sam Dastyari also copped blame for rising tensions with China over what Labor MP Anthony Albanese labelled "inappropriate behaviour" involving Chinese donations.
"I think some of the rhetoric around that relationship was overblown - guess what, they noticed," Mr Albanese told the Nine Network.
"I would have thought that a lot of rhetoric at that time and since has caused some issues."
Senator Cormann said Mr Dastyari was partly to blame.
"If he hadn't done what he had done, obviously these issues would not emerged the way they have," he said.
Meanwhile China on Thursday dismissed reports it wants to build a military base in Vanuatu as "sheer fiction" from Australians stirring up trouble.
Senator Payne said the establishment of any foreign military bases in the region would be a great concern.
"We take the security and stability of our region very, very seriously," she said.
"We would not welcome an engagement of that sort."
