China has hit back at Australia over the "unwarranted invective and blatant slander" from Senator Concetta Fierravanti-Wells in her latest criticism of Beijing's aid program in the Pacific.

Key points: Fierravanti-Wells wrote a newspaper column critical of Chinese loans to the Pacific

Fierravanti-Wells wrote a newspaper column critical of Chinese loans to the Pacific China warns respect can't be won by "smearing others"

China warns respect can't be won by "smearing others" Lowy Institute says majority of Chinese aid to Pacific is in form of cheap loans

Ms Fierravanti-Wells last week again took aim at China's loans to Pacific Island countries, saying the "sovereign threat is less confrontational" now than during war times but that "the debt-trap diplomacy [is] just as insidious".

"In recent years, borrowing by Pacific nations from China has escalated," the former minister for the Pacific wrote in The Australian newspaper.

"Of concern is that indebted countries could be forced to forfeit assets to China to repay loans: the port of Hambantota in Sri Lanka is a case in point."

Senator Concetta Fierravanti-Wells has been a critic of China's approach to the Pacific. ( AAP: Lukas Coch )

But in an angry response, the Chinese embassy said Ms Fierravanti-Wells' accusations were baseless.

"The ridiculous and absurd allegation, filled with Cold War mentality, reflected the Senator's prejudice, arrogance and ignorance," an embassy spokesperson said.

"Earlier this year, she made some similar irresponsible claims, which were questioned and refuted by many Island countries."

Ms Fierravanti-Wells said the small island countries were jeopardising spending on important social programs because of their need to repay Chinese loans, meaning Australian aid to the Pacific would be used in ways it wasn't intended.

"In short, Australian taxpayers effectively will be subsidising repayment of loans to China," she wrote.

But China defended its program and warned Australia against interfering in its relationships.

"One can never win respect by smearing others," the embassy spokesperson said.

"Cooperation between China and the Island countries is transparent and open. No-one could deny the positive outcomes delivered by such cooperation with their assumption or imagination.

"Any attempt to obstruct the development of relations between China and the Island Countries is doomed to failure."

Ms Fierravanti-Wells, who was minister for international development and the Pacific until quitting the post during the Liberal leadership change in August, has been particularly critical of China's loans to Pacific countries.

In January she accused China of funding "roads that go nowhere" and building infrastructure "for the heck of building".

The Lowy Institute estimates that 70 per cent of Chinese aid money to the Pacific comes in as cheap loans which are used to fund the big projects Beijing favours.

The Institute says Australia remains by far the biggest aid donor to the Pacific, pouring almost $9 billion into projects across the region from 2011 to 2017.