China has responded angrily to the Federal Government's Defence White Paper.

Key points: China said South China Sea comments in the Defence White Paper were "negative"

China said South China Sea comments in the Defence White Paper were "negative" Defence Minister Marise Payne said the Government knew the South China Sea was a "point of difference"

Defence Minister Marise Payne said the Government knew the South China Sea was a "point of difference" Meanwhile, US said it would increase freedom of navigation operations in the South China Sea

Chinese Foreign Ministry spokeswoman Hua Chunying said China was "dissatisfied" with what it saw as "negative" comments about the South China Sea in the document.

Ms Hua said China did not want to see an arms race and hoped relevant countries could give up joint drills and withdraw their military presence in the region.

"We have noticed Australia has released its white paper," Ms Hua said.

"It mentions Australia is willing to enhance cooperation with China, China welcomes that and hopes it can translate these positive statements into concrete actions.

"We also noticed that this white paper made some remarks about South China Sea and East China Sea.

"These remarks are negative and we are dissatisfied about this."

Defence Minister Marise Payne told 7:30 the Government knew the South China Sea was a "point of difference" between Australia and China.

"We obviously have very significant relationships with China across a range of areas and not least of which is our trading relationship," she said.

"But importantly as part of our defence relationship we work with the PLA Navy, with the PLA itself.

"We have a strong defence relationship but we do have a point of difference in this regard [the South China Sea] and we're certainly not going to take a backwards step in articulating our position."

Former minister Kevin Andrews has used the white paper release to apply pressure to the Government to send warships within 12 nautical miles of the contested islands.

The Liberal backbencher said Australia must now follow the United States' example.

"We have to exercise that freedom of navigation and that means being prepared to sail our naval vessels, to fly our aircraft through that region and say we want unrestricted trade routes in this area," Mr Andrews told the ABC.

US to increase freedom of navigation operations

Meanwhile, the United States has said it will increase freedom of navigation operations in the South China Sea.

"We will be doing them more, and we'll be doing them with greater complexity in the future and ... we'll fly, sail and operate wherever international law allows," Admiral Harry Harris, head of the US Navy's Pacific Command, said.

"We must continue to operate in the South China Sea to demonstrate that water space and the air above it is international."

China's Foreign Minister Wang met with US national security adviser Susan Rice on Wednesday, where the two "candidly discussed" maritime issues, according to a White House statement.

Ms Rice emphasised US support for freedom of navigation and urged China to address regional concerns, the statement said.

ABC/AFP