It follows warnings from New Zealand’s Security Intelligence Service (NZSIS) that local governments are seen as prime targets for "influence building".
In a Local Government New Zealand webinar last year, NZSIS director-general Andrew Hampton said one form in which foreign interference occurred was through sister-city relationships.
"Yes, they are about building good relationships with other countries, but they are there to achieve other objectives including foreign interference and even potentially espionage objectives, so we ask you to be vigilant about that," he told councillors.
Mr Radich said he saw no risk of foreign interference coming the way of Dunedin or the city council.
"However, it is something we're aware of, and wary of," he said.
Dunedin had sister-city relationships with Edinburgh, Scotland; Otaru, Japan; and Shanghai, China.
It also had a "dormant" sister-city relationship with Portsmouth, United States, and a formal friendship, a relationship one below a sister-city, with Qingdao, China.
Mr Radich said there was a "mutual benefit" for the cities — economically, socially and culturally.
"From my perspective, I would say that China is interested in maintaining friendly relations with New Zealand and Shanghai, in particular, is interested in maintaining friendly relations with Dunedin," he said.
"I haven't had any attempts to influence me or the city about anything as far as I can tell."
"We're aware that the possibility exists, but none of us have ever encountered any attempt at trying to influence what our attitudes or position is regarding China or international relations."
