New Zealand navy personnel advised live rounds were fired from a Chinese warship in international waters near the island nation on Saturday.

"Reporting from the New Zealand Defence Force that the Chinese naval Task Group has advised of a second window for live firing activity, on Saturday afternoon," a spokesperson for Defence Minister Judith Collins said in a statement seen by Reuters.

China's naval task force had given radio notice of its intent to conduct firing, and NZ Prime Minister Christopher Luxon said the group had acted under international law.

Anthony Albanese earlier bristled at suggestions he should get Beijing on the phone after China's military carried out a live-fire exercise off the Australian coast on Friday.

The prime minister said senior Defence officials continued to monitor three Chinese warships after they were spotted moving south in international waters about 280km off Sydney on Thursday.

Foreign Minister Penny Wong met with her Chinese counterpart and demanded to know why the vessels only offered limited notice before the firing was carried out.

China's actions are believed to have complied with international law and the Australian Defence Force has advised there was no imminent threat to its assets or those of NZ.

Analysts believed the sailing was an attempt by Beijing to project power and send a message to Canberra about China's capability.

Mr Albanese was asked on Saturday if he would call President Xi Jinping in light of the incident but instead defended China's right to carry out the exercise as it had not breached international law.

"It's important to not suggest that wasn't the case," he said.

With AAP