The Chinese military has defended the holding of naval exercises in waters between Australia and Indonesia.

China's Defence Ministry says last week's exercises were not aimed at any particular country.

It's believed the Chinese navy has never before held such activities so close to Australia.

Chinese television reports have showed what appeared to be simulated combat drills, including weapons firing.

But the Chinese Defence Ministry has told the ABC that this was "normal training" as part of an annual plan.

In a statement in response to questions, the ministry also said that the exercises were "not aimed at any countries" and had "nothing to do with the regional situation".

It added: "China has the lawful right to sail freely in these waters".

Last week, Chinese destroyers Wuhan and Haikou and amphibious landing craft Changbaishan carried out combat simulation drills.

This prompted concern that Beijing is flexing its muscles further afield.

Analysts say that by sending ships through the region in such a way, Beijing is making it clear that it now considers the Indian Ocean a strategic priority.

The Australian air force monitored the exercises.

Foreign Affairs Minister Julie Bishop told Australia Network that "China is an emerging power in our region and globally".

"These exercises are taking place in international waters and Australia conducts similar exercises in international waters," she said.