The fallout of China's long-range missile test has continued almost a week after it fired a dummy warhead into the South Pacific.
The launch came with little warning and fell within hours of Australia and Fiji inking a mutual defence pact on Monday.
Defence Industry Minister Pat Conroy said the test-firing had hurt Beijing's standing in the Pacific.
"We've expressed our concern to the Chinese government at a number of levels and we'll keep doing that," he told ABC's Insiders program on Sunday.
"I don't think this was conducive to China's standing in the region and I think it was a provocative action."
China has been working to expand its influence in the Pacific, making strategic infrastructure investments in island nations and seeking policing and security agreements.
But in a move widely hailed as a diplomatic coup, Australia joined Fiji in the island nation's first defence alliance.
Other Pacific nations could join the pact and New Zealand has already expressed interest in becoming a signatory.
Mr Conroy said any conflict in the region would be "a nightmare scenario" while refusing to say if Australia had the capability to counteract a long-range missile strike.
"It's important not to go into too many hypotheticals," he said, instead pointing to the government's investment in missile defence systems.
"We need to do more, and that's why we're investing $30 billion in it, including a 400 per cent increase in our active missile defence investment, including introducing medium-range, ground-based air defence systems."
Solomon Islands Prime Minister Matthew Wale has called for a Pacific-wide pact, warning Beijing "don't threaten us" following the missile launch.
Chinese officials have defended the test, saying it was a routine part of the nation's military training program and was consistent with international law.
"We hope relevant countries will not read too much into it," foreign ministry spokeswoman Mao Ning previously said.
But Mr Conroy said China's actions again demonstrated regional security could only be provided from within the Pacific and Australia was ready for conversations about a broad defence pact.
"This would take a number of years if the rest of the Pacific was up for it, but ultimately it's a decision of all the Pacific leaders," he said.
Labor cabinet minister Jason Clare said China's actions were not the way to make friends and expand influence.
"You don't make friends by firing a missile over someone's backyard," he told Sky News on Sunday.
"Good neighbours don't shoot stuff over someone else's house."
