A senior cabinet minister has rejected Chinese claims the detention of at least one million Uighurs is "utterly fake news".
Michaelia Cash says the government believes reports at least one million Uighur Muslims are being held in camps in China's northwestern region of Xinjiang.
"We believe that the reports are credible. Both the prime minister, I understand, and the foreign minister, have expressed Australia's concerns, both directly to China and publicly," she told reporters in Perth.
"We remain clear in our position that China must act consistent with its human rights obligations and it should end the detention of the Uighurs."
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China's ambassador to Australia Cheng Jingye used a rare press conference in Canberra to rebuff international condemnation of the camps Beijing claims are for "re-education".
"What has been done there is nothing to do with human rights, nothing to do with religion," China's ambassador to Australia Cheng Jingye told reporters in Canberra on Thursday.
"It's about fighting terrorism and taking preventing actions."
Mr Cheng acknowledged it could have been a better year for relations with Australia, but he expects it to be back to normal with the efforts of both sides.
The ambassador didn't rule out Prime Minister Scott Morrison being invited to Beijing.
"As ambassador, of course, I will do what I can ... to promote these relations, these important relations," he said.
Despite a year of tensions, Senator Cash said Australia had a "very, very good relationship" with China.
She said Mr Morrison would welcome an invitation to meet with Chinese President Xi Jinping.
"Our leadership team are out there meeting with their counterparts but I think the prime minister has said he's not going to wait by the phone - that is not his job to do that," Senator Cash said.
