China is conducting extensive espionage against Australia, Canberra's most senior defense official said on Friday in a rare public accusation against its largest trading partner.

Chinese spying has been the subject of much speculation, but senior officials have largely steered clear of making public complaints.

"It is no secret that China is very active in intelligence activities directed against us. It is more than cyber," Dennis Richardson, secretary of the Defence Department, said in a speech in Canberra.