Foreign Minister Julie Bishop has told China that she doesn't take seriously the Trump administration's threat to tear up its trade agreement with Australia.

China's foreign affairs minister, Wang Yi, asked Ms Bishop over dinner on Tuesday night about the Trump White House's stated intention to renegotiate US trade agreements with 11 countries, including Australia.

"I can't believe it", she replied, according to one official present, and "I don't take it credibly", according to another.

It made no sense because the trade balance favoured the US, the Australian minister said. And, since the Australia-US free trade agreement took effect in 2005, the balance had moved increasingly in America's favour.