Labor leader Anthony Albanese has questioned the Prime Minister's criticism of Australia's largest trading partner while touring America with President Donald Trump, saying he should engage with China without using "a loud hailer from the United States".

Scott Morrison used a speech to the Chicago Institute for Global Affairs to argue China was no longer a developing economy and should be treated as a "newly developed economy" in trade and environment policy. Behind the argument is the fact China is now the world's second-largest economy, the largest manufacturer and a significant financial centre.

Speaking to ABC radio on Tuesday, Mr Albanese said sending China a message from Chicago risked taking sides in the debate and it would have been better said in Australia "so there was no confusion that the Prime Minister was advancing Australia's national interest".

He welcomed a legitimate debate about World Trade Organisation (WTO) rules but said China was "quite clearly still developing".