The Chinese communications vendor was blocked from bidding for NBN contracts due to Australian Government fears of Chinese cyber attacks. The Chinese Government has criticised this move.

At a press conference in Sydney, the Prime Minister brushed off suggestions the decision will damage ties between the two countries and maintained it was made "in the national interest".

She also noted the ban is not in breach of any trade agreements or arrangements with China.

"We have a strong, robust relationship with China - we are deeply engaged at every level," the Prime Minister said. "We have a strong economic relationship with China, we have increased ties at every level -- diplomatic ties, multilateral ties, people-to-people links and you will continue to see our relationship with China strengthen and grow."

She acknowledged there will be times when Australia and China may not see eye to eye.