Foreign Minister Penny Wong was asked on Wednesday about the potential of more regular regional sea patrols in tandem with the United States and Japan, following China's launching of nuclear-capable missiles.
"The maritime zone is critical to stability in the region so, when we have a conversation about the South China Sea, that is something I'm sure we should all keep in mind," she told reporters.
"We are concerned about some of the aggression we are seeing, we are concerned about some of the destabilising conduct we are seeing, and the countries of the region have a choice to make about how we all respond to that."
Senator Wong met with her Chinese counterpart Wang Yi on the sidelines of ASEAN talks in Manila on Tuesday evening to highlight her concerns.
"You speak about the importance of mutual understanding,'' she said.
"I agree, and I expect we will discuss our concerns ... including around peace and stability in our region, safe and professional military conduct, and the importance of transparency and reassurance of intent."
Senator Wong noted the "strong concerns" expressed by many Pacific Island countries about the submarine-launched missile earlier in July.
The two foreign ministers also discussed the importance of peace and stability in the Indo-Pacific.
"You've often heard me say that we will co-operate where we can and disagree where we must, and we want to continue to engage because we believe that is in our national interest," Senator Wong said.
Australia was only given a few hours' notice by China of the test, which was launched within hours of Prime Minister Anthony Albanese signing a new defence alliance with Fiji.
The missile is understood to have landed near Tuvalu.
In a statement published by Chinese state media, Mr Wang is reported to have voiced his hope Australia would uphold the principle of "non-interference in internal affairs and abandon double standards".
"Wang emphasised that both sides should address differences with mutual respect and equality, seek common ground while managing disagreements, and foster a virtuous cycle of positive growth in the relations, rather than allowing it to be disrupted or undermined by prejudice," the statement said.
Mr Albanese slammed the launch as a "provocative act" while other Pacific nations including New Zealand, Tuvalu and Fiji condemned the incident.
Solomon Islands Prime Minister Matthew Wale was standing beside his Australian counterpart in Honiara in early July when he said the test was "not the act of a friend".
Mr Albanese has previously flagged a strong statement would be issued by the Pacific Islands Forum, but the group's disagreement on the wording of the text has resulted in a delay.
A foreign ministers' meeting of the forum will be held in August, where the issue is likely to be discussed.
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