NSW Labor leader Jodi McKay has criticised one of her MPs for praising China's "unswerving leadership" in handling the coronavirus crisis, labelling the comments as "inappropriate".

Labor upper house MP Shaoquett Moselmane sparked controversy this week by saying China's President Xi Jinping had "fought [COVID-19] and contained it", describing the nation's response as "emphatic" and "decisive".

Federal Home Affairs Minister Peter Dutton strongly condemned Mr Moselmane's remarks as Chinese government "talking points" and said he should resign from the NSW Parliament.

NSW Labor MP Shaoquett Moselmane has been heavily criticised for praising China's President Xi Jinping's handling of the coronavirus crisis. Credit:James Alcock

"You can’t have an allegiance to another country and pretend to have an allegiance to this country at the same time," Mr Dutton said in an interview with 2GB radio's Ray Hadley on Thursday.