West Australian Premier Mark McGowan says the state's economy is on track to regain its footing faster than the eastern states and has warned against inflaming tensions with China, the state's biggest trading partner, which is underpinning a massive iron ore royalty windfall.

Mr McGowan, a Labor leader enjoying extremely strong support in a typically conservative state, urged caution as tensions with China escalate over Australia's role in seeking an inquiry into the coronavirus outbreak.