Sydney, Aug 18 (DPA) Australian Foreign Minister Steven Smith Tuesday flagged further discord with China following tiffs over foreign investment rules, iron ore pricing, alleged industrial espionage and the visit to Australia of Uighur leader Rebiya Kadeer.

He told parliament that China had cancelled a visit by a senior official in response to Canberra's decision to grant Kadeer a visa to visit a film festival in Melbourne.

US-based Kadeer is the exiled leader of the mostly Muslim Uighurs in Xinjiang in western China. At least 197 people were killed in clashes there earlier this year.

'China was most unhappy with her visit,' Smith said, noting that further sanctions could befall Canberra.

'If of course China takes any further action in response to our decision, that will be for us a matter of regret and we will deal with that sensibly,' Smith said.

Ties with China came under strain earlier this year when Canberra refused to welcome a bid by state-owned Chinalco to double its stake in Anglo-Australian mining company Rio Tinto.