China ties a delicate balance: business

The federal government must undertake the delicate balancing act between national security and maintaining the strong economic ties Australia enjoys with China, a leading business group says.

Prime Minister Malcolm Turnbull, who introduced anti-foreign interference laws last week, drew a stinging rebuke from China after suggesting they were aimed at the Asian giant.

"Of course, our country's national security concerns must always come first," Australian Chamber of Commerce and Industry boss James Pearson said on Tuesday.

But he said it was also important to recognise China was Australia's number one trading partner and an increasingly important source of investment for both Australia and Chinese businesses.

He said the China relationship was vital not just to the prosperity and high living standards that Australians enjoy today but to the prospect of future strong growth.