Australia has been issued with an unusually blunt warning from China — stay out of the South China Sea or risk damage to bilateral relations.

Key points: China calls UN tribunal ruling it has no claim over the South China Sea a farce

Mr Lu Kang warns Australia not to treat international law as a game

China says it will decisively respond against anyone who takes provocations against its security interests in the South China Sea

China's Foreign Ministry has said it was shocked by remarks Foreign Minister Julie Bishop made on AM on Wednesday, that China should abide by the UN ruling and Australia would continue freedom of navigation exercises.

China has called the UN tribunal that ruled it has no claim over the South China Sea a farce, an American conspiracy and the ruling a piece of waste paper.

Now it has turned its fiery rhetoric and threats towards Australia and Ms Bishop.

Lu Kang, Chinese Foreign Ministry spokesman, said Ms Bishop's assertion that China should abide by the decision and that it was final and legally binding was wrong.

"Frankly speaking, I was shocked by the remarks from the Foreign Minister Bishop," he said.

"Australia should not treat the illegal ruling from an illegal arbitration court as international law."

He warned Ms Bishop's declaration, that Australia would continue freedom of navigation flights and patrols in the South China Sea, would threaten bilateral relations.

"Australia is not a party to the South China Sea issue.

"We hope Australia should firmly abide by the promise not to hold a position when there is a territorial dispute.

"Carefully talk and cautiously behave. Australia should not do anything which will damage regional peace, stability and security as well as the relations between China and Australia."

The Chinese are angered that Ms Bishop claimed China's reputation as a rising superpower could suffer if it ignored the decision.

Mr Lu Kang warned Australia should not treat international law as a game.

"China has lodged serious representations to Australia regarding the wrong remarks delivered by the Australian leaders," he said.

"We are firmly against this."

And in more threats, China said it would decisively respond against anyone who takes provocations against its security interests in the South China Sea.

China has said it has the right to establish an air defence zone to protect its interests and any freedom of navigation flights or patrols by Australia will be seen in Beijing as a direct challenge.