''If people are here as journalists and they're reporting fairly on the news, then that's fine," Mr Dutton told the ABC television's Insiders program,

His comments came after a week when two Australian journalists had to be evacuated from China having taken shelter in Australian diplomatic compounds after being questioned by Chinese police.

Mr Dutton declined to confirm that four Chinese journalists were questioned by Australia's intelligence agency in June, only to say there was "ASIO activity".

"Where ASIO has sufficient grounds for the execution of a search warrant, or for activities otherwise, then they'll undertake that activity," he said.

"If people are masquerading as journalists or business leaders or whoever they might be, and there's evidence that they are acting in a contrary nature to Australian law, then ASIO and the Australian Federal Police and other agencies will act."

He said there was no evidence that actions by the Australian agencies had put the Australian journalists in China at risk.

Mr Dutton declined to comment on a third Australian journalist, Cheng Lei, who is being held by Chinese authorities.

"We want to work very closely with the Chinese in relation to that matter, and we'll continue to do that," he said.

News Corp newspapers reported the AFP raided a Canberra apartment block housing Chinese embassy staff in May.

But Mr Dutton described it as "day-to-day community policing".

"It was related to either a drug matter or to another domestic matter, so as I understand it," he said.

Australian Associated Press