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Australia must deepen investment and trade cooperation with China as quickly possible to avoid surrendering advantage to other countries also clamoring for a share of the booming Chinese market, the nation's top diplomat has warned.

According to a report of The Sydney Morning Herald, Secretary of the Department of Foreign Affairs and Trade Peter Varghese Launched a robust defense of the China free trade agreement and said in a Sydney economic conference on Tuesday that it was the best trade deal China has cut with any country.

The report said that the legislation for the deal which was passed by Parliament on Monday night has faced criticisms that it will open a floodgate to cheap Chinese workers,

Mr. Varghese says competition for Chinese business will only intensify and therefore deeper economic integration with the world's second largest economy needs to continue quickly.

"We should not forget that Australia is not the only country seeking to establish preferential economic arrangements with China. Competition in the Chinese market is intense – it has been for years and will only increase in the years ahead, even with slower growth in the Chinese economy," Varghese says.

Mr. Varghese says the landmark China deal has "the potential to underpin Australia's future prosperity".

The free trade agreements with China, Japan and South Korea together are expected to add an extra $24.4 billion to Australia's national income between 2016 and 2035.

"ChAFTA is a remarkably good deal for Australia and the best deal that China has done with any partner to date," Varghese says.

He says it will improve the livelihoods of farmers and producers, with tariffs falling or being removed entirely on dairy, beef, lamb, wine, barley and seafood. Virtually all resources, energy and manufactured goods will enter China duty-free within four years.

Mr. Varghese dismisses union claims that the agreement will give unrestricted access to Chinese business people and workers.

Instead companies cannot bring in skilled workers for infrastructure projects without advertising and looking for suitable Australian workers first.