Home Affairs Minister Peter Dutton has taken aim at the Chinese Communist Party, accusing it of conduct "inconsistent" with Australian values and declaring the government would call out cyber attacks, theft of intellectual property and undue influence at universities.

Following a long period of tension between Beijing and Canberra, Mr Dutton praised the Chinese diaspora in Australia and said the two countries' economic relationship was important but he insisted publicly addressing hostile activities was the right thing to do.

Home Affairs Minister Peter Dutton has taken aim at China. Credit:AAP

"We have a very important trading relationship with China – incredibly important – but we are not going to allow university students to be unduly influenced, we are not going to allow theft of intellectual property, and we are not going to allow our government bodies or non-government bodies to be hacked into," he said on Friday.

"Our issue as I've said before is not with the Chinese people, not with the amazing Chinese diaspora community that we have here in Australia. My issue is with the Communist Party of China and their policies to the extent that they are inconsistent with our own values."