The Secretary of the Department of Foreign Affairs and Trade has rejected reports there is a "freeze" on ties between Australia and China.
Frances Adamson confirmed that both countries have some complex and difficult issues, but they are working through them and the relationship is "functioning".
"I think the headline is just wrong," she told a Senate committee hearing on Thursday, after being asked about a report in The Australian newspaper labelled 'Cold War: China's freeze on ties'.
A spokeswoman from Foreign Minister Julie Bishop's office confirmed Ms Adamson's assessment.
"Despite some of the commentary in Australian and Chinese newspapers, we are not experiencing a 'freeze' in diplomatic relations with China," she told AAP.
"The foreign minister looks forward to visiting China to participate in the annual foreign and strategic dialogue in 2018 with her counterpart."
That will follow China's upcoming National People's Congress meeting when the make-up of the country's senior leadership team and national priorities will be determined.
"Australia's deep diplomatic engagement with China continues as normal," the spokeswoman said.
The Australian's report claimed high-level ministerial and diplomatic trips had been stalled or deferred in order to pressure Malcolm Turnbull over proposed foreign interference laws.
The government says the legislation is not aimed at any particular country or foreign government, but rather at strengthening the transparency and integrity of institutions while maintaining relations with trading partners.
Labor MP Lisa Chesters said overseas relationships were always complicated.
"But when it comes to setting the agenda for good public policy in this country we need to do what's in the best interest of Australians," she told reporters in Canberra.
