Beijing has suggested Australia reflect on how it engages its Pacific neighbours after Fiji's Prime Minister accused Scott Morrison of being "insulting and condescending" at last week's Pacific Islands Forum (PIF) in Tuvalu.

Key points: Pacific leaders were unhappy with Australia's stance on climate change at last week's forum

Pacific leaders were unhappy with Australia's stance on climate change at last week's forum China's Foreign Ministry accused Australia of being condescending and insulting

China's Foreign Ministry accused Australia of being condescending and insulting China insists its aid comes with no strings attached

After hours of negotiations, Pacific leaders failed to reach agreement on climate change action, and instead issued a watered-down communique after Australia refused to endorse statements calling for a ban on new coal mines and rapid reductions in greenhouse gas emissions.

The discussions on climate change reduced the Tongan Prime Minister Akilisi Pohiva to tears while other Pacific leaders also expressed their disappointment.

Fiji's PM Frank Bainimarama told The Guardian that when Mr Morrison was "[backed] into a corner by the leaders" at the forum, he started talking about how much money Australia had been giving to the Pacific — a move Mr Bainimarama described as "very insulting, very condescending."

In response to Mr Bainimarama's comments, Chinese Foreign Ministry spokesman Geng Shuang told reporters "it wasn't the first time that leaders of Pacific island countries resented Australia's behaviour."

"Australia might as well reflect upon itself," Mr Geng said during a regular press briefing.

"China has long been providing assistance to island countries with no political strings attached.

"Just as Prime Minister Bainimarama said on the same occasion, China doesn't insult island countries and go down and tell the world that we've given this much money to the Pacific islands.

"With sincerity, real results, affinity and good faith on one side and a condescending master on the other, it is easy to see the stark contrast.

"The people of island countries, who are in the best position to judge, are fully aware of the difference."

'China is not competing with Australia in the region'

Australia's Prime Minister Scott Morrison has ambitions to "step up" in the Pacific. ( AAP: Mick Tsikas )

While Australia has long been the biggest donor of aid and development funds in the region, China is making inroads through loans to governments and investment in the private sector.

Amid China's growing influence in the region, Australia has said it will "step up" in the Pacific and take its engagement to a new level.

However, relations between Australia and its regional neighbours took another hit last Friday when Australia's Deputy Prime Minister Michael McCormack was captured on tape saying island nations affected by climate change would continue to survive by picking Australian fruit.

In response, Mr Bainimarama accused the Australian Government of taking a "big step backwards" in its relations with the Pacific.

Anote Tong, who from 2003 to 2016 served as president of Kiribati — a tiny Pacific nation north-east of Fiji — told RN Breakfast that Pacific nations may view Australia as the "worst of two evils" when compared to China.

However, Mr Geng reiterated Mr Bainimarama's comment that China was not competing with Australia in the region.

"For a while, some in Australia have been spreading the China threat fallacy among island countries," he said.

"They see China as a challenger to Australia's influence in the region.

"We note that Fiji's Prime Minister said that China is not competing with Australia in the region.

"Samoa's Prime Minister also said that Pacific island leaders do not share Australia's concerns about China's rising influence in the region. These are fair-minded judgments."

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Watch Duration: 1 minute 14 seconds 1 m 14 s Tuvalu's PM said tears were shed during Pacific Island Forum.

Mr Geng added that Beijing would continue to work with Pacific countries under the framework of "South-South Cooperation" — which, according to the UN, refers to the collaboration between developing countries in sharing knowledge, skills and successful initiatives in specific areas.

"We also hope other countries, including Australia, will proceed from the needs of island countries and take more concrete actions to help them grow the economy and improve people's lives with sincerity, instead of the obsolete Cold-War mentality and zero-sum game mindset," he said.