One expert said the event, a ceremonial tree planting on the banks of Lake Burley Griffin, was a positive sign the ACT could maintain its relationship with China despite its tensions with the Morrison government.

But another China watcher said the embassy appeared to using the ACT government as part of a coordinated attempt to undermine the federal government's strong stance against Beijing.

ACT Commissioner for International Engagement Brendan Smyth and Chinese ambassador Cheng Jingye participated in a planting of a so-called "tree of friendship" at Beijing Garden in Yarralumla on Wednesday, November 18.

The ceremony was part of celebrations to mark the 20^th anniversary of the sister-city relationship between Canberra and Beijing, which also included a lunch earlier this week attended by ACT government and embassy representatives, as well as members of the business and academic community.

The idea for the tree planting came from the Australia-China Friendship Society of the ACT, according to reports in Chinese media and the embassy's website.

In one report, the association's president, Carol Keil, said the symbolic gesture of friendship was "in this troubled time ... a very good thing to do".

The planting of the crab apple tree coincided with an escalation of ongoing tensions between China and Australia, which was sparked by media reports of a list of grievances Beijing harboured against the federal government.

China's complaints, which the embassy deliberately leaked to a journalist, included the government's decision to ban Huawei from Australia's 5G network, funding for "anti-China" research and calling for an independent investigation into the origins of the coronavirus pandemic.

Professor Jane Golley, director of the Australian Centre on China in the World at ANU, said the anniversary events showed the ACT's relationship with Beijing was able to "survive, even thrive" despite the political tensions between the two national governments.

Professor Golley, who was among the 20 attendees at the anniversary lunch, said the ACT could play a role in helping to thaw the "deep freeze" in Australia-China relations.

"We [Australia] are the engagers, and engagement brings prosperity," she said.

"There are obviously lots of ways that we have to be a bit careful [around dealing with China], but walking away from it all is not the solution."

Professor Golley said the mood at this week's anniversary lunch was a "nice relief and change ... from sitting around a table where national tensions seem to be prominent".

Professor Clive Hamilton offered a far different view, saying the ACT government needed to be more circumspect about dealing with China officials to avoid becoming Beijing's "patsies".

He accused the embassy of mounting a "systematic influence campaign" in Canberra, which he said included Robert Johnson running as a Canberra Liberals candidate in last month's ACT election.

Mr Johnson was appointed a director of an organisation linked to the Chinese Community Party's overseas influence network in 2014, according to reports in Chinese state media. The Liberals confirmed Mr Johnson had attended some of the group's events, but denied he served in the director's role.

Professor Hamilton said the Chinese government was trying to forge relationships with local governments, such as the ACT, as a way of circumventing the Morrison government.

"Beijing wants its mission in Australia to cultivate friendly relations with state and local government officials as a way of bypassing the federal government and essentially undermining the strong stance that the federal government has taken against China's interference," he said.

"Chinese officials in Australia and their proxies have been cultivating states and territory officials using the subterfuge of people-to-people relationships.

"Developing these relationships would be fine except that the other party is exploiting them for other political purposes, that is the risk in all of this."

An ACT government spokeswoman said it aimed to foster mutually beneficial relationships with local embassies and multicultural communities and the "local Chinese community was no different".

Asked to describe the ACT's relationship with the Chinese community, the spokeswoman said: "Polite and courteous"

"Canberra prides itself on being an inclusive community, we are in the unique position of having the embassies and diplomatic missions based in our city," she said.

The Department of Foreign Affairs and Trade and the Chinese embassy were contacted for comment.