Its education ministry has issued the advisory to students before Australian universities reopen in July.
The ministry cited the threat of Covid-19 and discrimination against Asians as possible risks.
Australia’s government and universities have rejected the idea the country is unsafe.
On Tuesday, Beijing said in a statement students should be “cautious” when choosing to go or return to Australia.
“The spread of the new global Covid-19 outbreak has not been effectively controlled, and there are risks in international travel and open campuses,” the ministry said. “During the epidemic, there were multiple discriminatory incidents against Asians in Australia.”
In response, Australian Education Minister Dan Tehan said the country was a “successful, multicultural society” which provides a “world-class education”.
He also made reference to Australia’s success in flattening its virus curve which meant that it was “one of the safest countries in the world for international students to be based in right now”.
What are the broader tensions?
The advisory marks the latest escalation in tensions between China and Australia during the coronavirus pandemic.
Relations worsened after Australia echoed the US in calling for an independent inquiry into the origins of the coronavirus, first detected in China late last year.
China has dismissed that call as politically motivated. It has since imposed a tariff and blocked shipments of some Australian imports, but has denied this is economic retaliation.
Last week, it also warned citizens against travelling to the country, saying there had been a “significant increase” in racist attacks on Asian people in Australia.