"Don't give us such a hard time," was the general message according to the person.

The briefings appear to be an attempt to educate major company boards on the thinking behind the federal government's increasingly tough stance towards China and its view that Beijing is seeking to interfere in Australia's domestic affairs.

"They were making the point that the government had arrived at its current position after much careful consideration," said the person.

"These are serious people not prone to hyperbole or exaggeration and I think most directors have taken the briefings very seriously."

'New era of co-operation'

While not unprecedented, one source said the briefings signalled a "new era of co-operation" and an effort to bring the business community "into the tent".

A spokesman for DFAT said in co-operation with other agencies it regularly engages with a range of stakeholders on important foreign policy and national security issues.

"There is nothing unusual about this outreach," said the spokesman.


The other person, who attended a briefing, said while the government's security concerns were widely understood, they still left the business community in an awkward situation as it would feel the effects of any retaliation from China.

Zhang Jian, associate professor at the University of New South Wales in Canberra, said it was not surprising the government was holding these type of briefings, given the significant concerns it had raised in recent years.

"They want companies to be more alert to the issues, but these type of briefings may not be helpful for the relationship, which has been quite tense," he said.

Despite the increasingly fractious relationship between Beijing and Canberra, the business community has largely been silent in its criticism of the federal government, even though many directors remain concerned about the impact the current chill could have on their businesses.

Mild criticism

The chairman of Fortescue Metals Group, Andrew Forrest has been mildly critical in recent months saying the anti-China rhetoric of the Coalition, Labor and the Greens is costly for all Australians.

But this mild criticism is a big change to recent years when he and others, including casino mogul James Packer and media owner Kerry Stokes, have been outspoken in their criticism of the federal government's China policy and how it was hurting business.

The acknowledgement that further trade disruptions are expected suggests the federal government is unwilling to soften its position even if that means some short-term pain for business.


Treasury Wine Estates indicated last month its goods were being held up in Chinese ports, in an apparent effort to punish Australian companies for the federal government's stance.

Australian beef, vitamin and infant formula companies have also had issues with Chinese customs over recent years.

'Need for transparency'

It is understood Mr Lewis has regularly briefed directors of companies controlling critical infrastructure over the years, but he and Ms Adamson are focusing these briefings on Australia's top 20 companies and those with major exposure to China.

Ross Babbage, a former intelligence officer who is now chief executive of consulting firm Strategic Forum, said there was general understanding in the national security community that more needed to be done to inform the public on the threat posed by China and others.

"There is a need for transparency and for generally telling the public what is going on as that is one of the best defences for this kind of political warfare and helps to build resilience in the political system," he said.

On the issue of cyber, Mr Lewis briefed those present on the threat posed by state-backed cyber attacks.

"Most companies are very aware of organised crime, but often have less understanding about the threat coming from state actors," said one of the sources from the briefings.

The person said Mr Lewis identified China, Russia and also North Korea as the countries most likely to conduct offensive cyber attacks.

Mr Lewis also briefed boards on what to watch for in terms of interference and influence from foreign powers.

Australia's new interference laws passed the Senate last week in sweeping changes that will force those lobbying on behalf of a foreign government to register and will see tough new penalties for spying.