Beijing has taken strong offence at comments from foreign minister Julie Bishop over an international court ruling on the South China Sea.

But Bishop refused to back down despite a formal protest from the Chinese, whose foreign ministry spokesman said he was “shocked” by her remarks.

China has rejected this week’s ruling by the permanent court of arbitration in The Hague that it has no historical title over the South China Sea and it had violated the Philippines’ economic and sovereign rights.

Bishop warned China that its reputation would suffer if it ignored the decision, insisting friendly international relations were crucial to its rise.

Chinese foreign ministry spokesman Lu Kang said on Thursday that China had formally protested against Australia’s “wrong remarks”, and that China hoped Australia did nothing to harm regional peace and stability.

Australia should join the majority of the international community in not taking the result of the “illegal outcome” of the case as international law, he said.

“We hope that Australia can set more store by international law, and not treat it as a game,” Lu said, repeating that China respected freedom of navigation and overflight in accordance with international law.

“Honestly speaking, I’m a bit shocked at Bishop’s comments.”

In response Bishop issued a statement on Thursday night reiterating that Australia “continues to exercise its legal right of freedom of navigation and overflight”, and supporting the right of other countries to do the same.

“Australia stands with the international community in calling for both sides to treat the arbitral ruling as final and binding,” she said.

“Peace, stability and continued prosperity in East Asia requires the preservation of an order defined by rule of law for both great and smaller powers. Such an order is in the interests of all countries and has served the region remarkably well.”