Foreign Affairs Minister Bob Carr has hit out at Tony Abbott for what says were "dangerously dumb" comments about Chinese investment.

Speaking in Beijing on Tuesday, Mr Abbott warned about state-owned foreign enterprises buying into Australian companies, saying it would "rarely be in Australia's interest".

Many Chinese companies have some form of state control, and Senator Carr says the Opposition Leader's comments are dangerously adversarial and could offend other Asian countries.

"It disturbs me that he is making in three or four of the things he said about China what can only be seen and what will be seen by them I think as an adversarial approach with China and I think that is reckless," he told Lateline.

"I think it is really dangerously dumb for this country's interest."

He says Mr Abbott is trying to change the rules and moving towards a "blanket prohibition on Chinese investment by state-owned companies".

"Now that is crazy," Senator Carr said.

"You've got farm communities of Australia that are guaranteed prosperity because Chinese urbanisation has seen people buy their food stuff from supermarkets stocked with Australian produce.

Sorry, this video has expired Carr attacks 'dangerously dumb' Abbott speech

"You've got 5,000 mining jobs in Australia directly dependent on Chinese investment.

"For Tony Abbott to start talking that language sends a shocking message of retreat about Australia - that we're now seeking security from Asia, that we're going back to a view so dated of Australia's role, it's more conservative than John Howard's."

Federal frontbencher Bill Shorten has also questioned Mr Abbott's stance.

He says Australia has a long history of foreign investment and decisions should be made on a case-by-case basis.

"In the past we've had British nobility, Lord Vestey owned most of the northern pastoral stations in Australia," he said.

"I can't believe Mr Abbott's saying it's OK for British royalty to invest in Australia but somehow, government-owned enterprises elsewhere, it's not OK.

"We've got to look at the bid, not at the identity of the person who's making the proposition, but is the proposition in the Australian interest."

The Opposition, however, says Mr Abbott was merely making the point that any investment by Chinese government-owned companies should be carefully scrutinised.