A family is outraged after Taiwanese flags were painted over by council on children's artwork on a bull statue erected along Rockhampton's Riverbank.

Students from various schools in Rockhampton, in central Queensland, were asked to paint six bull statues as part of a joint initiative by Rockhampton Regional Council and Beef Australia for this week's biggest cattle industry event in the country.

One of those bulls was painted with barramundi-shaped flags by students at North Rockhampton High School.

Mr Downey, with mother Amy Chen, says 'it's a slap in the face' to their children. ( ABC News: Paul Robinson )

Taiwan-born siblings, Amber Jun Xie and Iu Ting Xie, painted their culture's flag on the bull's body.

Stepfather Lawrence Downey said his children had done "a great job".

"They were asked to paint their culture," he said.

The bull was picked up by council officers on April 30.

Just days ago, it was erected along Rockhampton's Riverbank for this week's Beef Australia.

The plaque reads: "This bull celebrates the cultural diversity of the Rockhampton community".

But the student's two Taiwanese flags — one painted on the front leg and another on the rear of the other side of the statue — had been painted over.

Taiwan flag painted over in blue fish design on bull's front leg. ( Facebook: Syuan-Si Chen )

Council admits covering up Taiwan flags

The council's department, Advance Rockhampton, has taken the blame for covering up the bull's Taiwanese flags.

"Advance Rockhampton made a decision to change one bull statue on display in Quay Street in line with the Australian Government's approach of adhering to the one-China policy," general manager Tony Cullen said.

The People's Republic of China claims Taiwan as its territory, however Taiwan operates like a separate country with its own constitution, parliament, and currency.

The Australian Government does not display Taiwanese flags, however there is no federal directive to state or local governments about what they should do.

In recent years, China has emerged as increasingly important for Australia's beef industry and is one of its biggest export destinations.

"We highly value the relationship with all of our international trading partners and the opportunities they present for our region," Mr Cullen said.

"The school was contacted prior to the changes being made."

Children 'very sad and disappointed'

The two students' mother, Amy Chen, said her children were "very sad and disappointed" by the council's decision to paint over their flags.

"It's a free country in Australia, so they [her children] feel a bit shocked their culture cannot be showed in public," Ms Chen said.

"They can't do that — it's wrong to do that."

Before and after photos show a blue fish instead of the Taiwan flag. ( Facebook: Syuan-Si Chen )

Mr Downey reiterated his family's anger.

"There was a Brazilian flag and a Japanese flag but their flag — a Taiwanese flag — was covered up," he said.

"It's like a slap in the face — what message are they [the council] sending to them?

"You can't tell me a group of Chinese delegates are going to be upset by two Taiwanese flags in the shape of a barramundi fish.

"The council should just say, 'no, we can't do this'.

"Don't worry about the Chinese — if they want to spend money, they'll spend money."

China pressures private companies

This week Foreign Minister Julie Bishop warned China against trying to exert pressure on private companies.

China had written to Qantas — and dozens of other airlines — asking them to refer to Taiwan as part of China.

In February, a Sydney waitress claimed she was fired by a Chinese restaurant for referring to herself as "Taiwanese".

The council said Beef Australia was not involved in the decision to cover up the children's flags.