Foreign Minister Julie Bishop has rejected opposition claims the coalition's approach to foreign investment will stand in the way of securing a free trade agreement with China.
The coalition plans to lower from $248 million to $15 million the trigger for Foreign Investment Review Board scrutiny of offshore investment.
Labor says China wants the cut-off lifted, not tightened.
Trade spokesman Richard Marles said it would be impossible for the government to conclude any agreement while it planned to lower the threshold.
Ms Bishop dismissed the claim, saying it was "rather insulting" to China because during Prime Minister Tony Abbott's meeting with President Xi Jinping this week, the notion of a free trade agreement was raised and enthusiastically welcomed.
The coalition's policies were made public before the September 7 election.
"I have no doubt China is aware of the different policy positions of parties," she told the ABC on Friday, adding that Labor was on the "wrong page".
The foreign minister, who plans to visit Beijing in the near future, heads to Japan, South Korea and Hong Kong next week.