Former deputy prime minister and Nationals MP Barnaby Joyce has labelled China a "benevolent tyranny", in response to the arrival in Sydney Harbour of three of the Asian superpower's warships last week.

Key points: The People's Liberation Army Navy ships cruised into the harbour last Monday, docking at Garden Island for a four-day stopover

The People's Liberation Army Navy ships cruised into the harbour last Monday, docking at Garden Island for a four-day stopover Former Defence Department secretary Dennis Richardson argued the visit could have been better handled

Former Defence Department secretary Dennis Richardson argued the visit could have been better handled Mr Richardson said Australia should welcome such visits, and avoid the "paranoia" over China

The People's Liberation Army Navy ships cruised into the harbour last Monday, docking at Garden Island for a four-day stopover.

Prime Minister Scott Morrison dismissed suggestions it was a "surprise" visit, saying it had been planned for some time after an earlier visit by Australian ships to China.

It was later revealed New South Wales Premier Gladys Berejiklian did not know the warships were due to arrive in her state.

Mr Joyce said Australia needed to respond to the rise of China as an economic and military superpower with strength, rather than simply rolling over and allowing Beijing to act without criticism.

"We can see the issues happening in Hong Kong as we speak," he told Channel Seven.

"They are not a democracy, they're basically a benevolent tyranny.

"I think Australia obviously has to recognise the economic strength and trade with them, but we want to trade with them as a partner, not as a servant."

Nationals MP Barnaby Joyce says Australia should not be scared of China. ( ABC News: Nick Haggarty )

Late last week former minister Concetta Fierravanti-Wells launched an extraordinary spray against Mr Morrison and the Government in The Australian newspaper for allowing the warships to arrive on the eve of the Tiananmen Square massacre, describing it as insensitive and as evidence Beijing could boss Canberra around.

"I think waking up and going for a walk around The Domain and seeing three Chinese warships there could've been a bit startling," Mr Joyce joked.

Former Defence Department secretary Dennis Richardson also argued the visit could have been better handled, but rejected suggestions it should not have been allowed to occur.

"I'm not quite sure what happened there; I suspect there are elements of simply muck-up," he told ABC RN.

"But having said that, we ought to be welcoming visits by Chinese naval vessels.

"There's a touch of paranoia in some of the commentary at the moment in respect of China."

Chinese Navy personnel onboard one of the docked ships. ( AAP: Bianca De Marchi )

Mr Richardson, who also served as Australia's ambassador in Washington DC, said he believed finding a consistent position on how to deal with Beijing would continue to be a challenge for the Australian Government.

Economic tension between China and the United States is dominating discussion at a meeting of G20 nations in Japan.

Trade Minister Simon Birmingham was at the meeting and warned any trade war between the two countries would hurt the global economy.

"We can't resolve their dispute for them," he told ABC RN.

"But we do urge them to engage, and engage in ways that recognise that their dispute is harmful to their consumers, to the economy in their countries, but also has spill-over effects for other nations as well."