Concerns have been raised over the Government's new choice for a ferry-builder.

Guangzhou Shipyard International will build and deliver two new Cook Strait ferries by 2029.

It's a state-owned company that also builds Chinese warships, but Foreign Minister Peters says the military links and espionage concerns aren't a worry.

Canterbury University professor and China expert Anne-Marie Brady says this a confusing signal delivered by Peters.

"He's very concerned about the strategic infrastructure and also the harmful aspects of our relationship with China. So it's odd that they have chosen a military shipyard, which is what the Guangzhou Shipyard International is."

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