Prime minister backs navy to deal with Chinese warships off Australia

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Prime Minister Anthony Albanese has insisted the presence of Chinese warships off the Australian coast does not highlight a gap in the country's naval capability.

He was speaking today as the intentions of the naval flotilla remain unclear, with New Zealand's defence minister confirming they sailed south to a location east of Tasmania.

Concern in Australia and New Zealand about the three vessels became heightened last Saturday when it conducted a second live firing drill off the coast of Sydney.

READ MORE: Chinese warships conduct second live fire drill in Tasman Sea as Australia seeks answers

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A similar incident in the Tasman Sea the previous day forced passenger jets to change course with little warning.

Speaking today, Albanese said the Australian Defence Force has sufficient naval resources.

"We had our defence review which went through, and looked at the defence force posture," he said.

"If you look at where our investments are going, they're very much focused on naval investment as well."

Albanese also praised the Chief of the ADF, Admiral David Johnston, for performing "an extraordinary job".

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"We're considered an island continent. Common sense tells you that a navy is pretty important for Australia," Albanese said.

His comments came after New Zealand Defence Minister Judith Collins told local media today the Chinese flotilla was 500km east of Tasmania and had slightly changed formation.

Foreign Minister Penny Wong raised concerns over Friday's live-fire drill alert, including appropriate notice, when meeting with her Chinese counterpart on the sidelines of the G20 meeting in South Africa.

But the Chinese armed forces hit back, saying Australia was exaggerating the presence of the warships and the live-fire exercises.

"Australia's claims are completely unfounded," Chinese defence ministry spokesperson Wu Qian said yesterday.

"China's actions are in full compliance with international law and international practices and will not affect aviation flight safety.

"Australia, knowing this well, made unreasonable accusations against China and deliberately hyped it up. We are deeply surprised and strongly dissatisfied with this."

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