The presence of Chinese warships in the Tasman Sea could indicate New Zealand needs to strengthen relations with China.

The Defence Force is monitoring three warships that have now entered Australia's exclusive economic zone, south of Tasmania.

Acting Prime Minister David Seymour says there's no reason to panic - but it shows how the world's changed. 

Channel Seven's foreign editor, Dr Keith Suter, says China hasn't violated international law. 

"It doesn point up to the fact that we need agreements between Australia, New Zealand and China on how the Chinese should behave when they're in our corner of the world."

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