The controversy comes after the United States defense secretary identified countering China and Russia as the top US national-security priorities when he released a new strategy this month.
On the weekend, The Australian newspaper quoted Defence Minister Marise Payne as saying, "I would note that Australia shares similar concerns."
But two days later, she has tried to modify those comments to reporters.
"I want to be very clear that Australia doesn't see a threat in the region and we certainly don't see China as a threat."