McGowan said he had been briefed about media reports in China regarding the crayfish industry.
"Obviously this is a massive hit, if true, to the industry both here and in the eastern states," he told reporters.
Asked if the crayfish industry was the latest victim of the weakening relationship between the two countries, McGowan said: "It certainly appears so."
The Premier said he had long been telling the Commonwealth to "rebalance and get back onto a good, solid relationship" with China.
"We don't share the same political system, we don't share many of the same attributes as countries," he said.
"But that doesn't mean we can't get on, that doesn't mean we can't work together, that doesn't mean we shouldn't be able to trade together."
McGowan said diplomacy should be handled behind closed doors.
"I've said this to the Prime Minister numerous times … if we lose our trading relationship with China, that is in effect a mass reduction in national income.
"That means big consequences for people's jobs, employment and living standards.
"We built a relationship with China over 50 years and we need to continue to protect that relationship."