China says Australia is "sick" and is "asking others to take medicine, which will not solve the problem at all," according to China's foreign minister.
Wang Yi said China hoped the Australian government would start looking at China's progress "objectively and rationally" to improve relations between the two countries.
China remains Australia's biggest trading partner but, over the past year, trade relations have dampened, with the latter's wine, lobster and timber segments experiencing a downturn.
Australia's Secretary of Home Affairs, Mike Pezzullo, said countries largely centered on a democracy should start "bracing again...for the curse of war."
Pezzullo said "free nations" should not stop looking for peace but should also be careful of the possibility that war will escalate in the coming years.
Pezzullo didn't specify any country in the Asia Pacific region. His comments were made for Anzac Day. Anzac Day is a national day of remembrance in Australia and New Zealand for those who served and died in all wars, conflicts and peacekeeping operations.
While other Australian officials agree with Pezzullo's words in his Anzac Day speech, others said it could trigger further fears and pressure.
Senior opposition Labor Party lawmaker Bill Shorten said Pezzullo's reference to escalating tensions in the region were "pretty hyper-excited language."
For Shorten, Pezzullo's choice of words should not be used by senior public servants as it could "cause more anxiety" during critical diplomatic times.
Premier of Western Australia, Mark McGowan, seemed to echo Shorten's insights. He said the federal government should "tone down" language being used when referring to military and diplomatic tensions.
On the other hand, minister of Home Affairs Karen Andrews said she believed Pezzullo had the freedom to speak his mind regarding the issue as it was a reminder the government should "be alert but not alarmed."
Meanwhile, it is expected that trade tensions will continue to rise between China and Australia after the latter canceled agreements between China and the state of Victoria under the Belt and Road Initiative.
According to the federal government, the move was made after determining that the deals were not consistent with the country's foreign policy targets.
Late last year, Victorian Premier Daniel Andrews warned that revoking the deals would further put ties with China at risk because the agreements promised new jobs and investments to the state.
