(Transcript from World News Australia on SBS Radio)
China is accusing Australia's Foreign Minister, Julie Bishop, of overstepping the mark with her comments on a restricted flying zone over the East China Sea.
And East Timor is calling for a response to allegations Australia spied on Timorese leaders during negotiations for a lucrative 2006 resource-sharing treaty.
It comes as the Abbott government appears to be smoothing over relations with Indonesia, but is failing to stop tensions from rising with other regional actors.
Thea Cowie reports.
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China has declared all aircraft must notify its authorities before entering its newly declared "air defence identification zone" which includes uninhabited islands controlled by Japan but claimed by China.
Ms Bishop criticised the move, saying it could increase tensions in the region.
But China has hit back, describing the Foreign Minister's comments as "irresponsible" and saying they risk damaging China-Australia relations.
Ms Bishop denies she's gone too far.
"This is long-standing Australian policy to oppose any unilateral or coercive action by any country that could add to the tensions that currently exist in the East China Sea so I'm following longstanding Australian policy in raising our concerns over action taken by China to announce an air defence identification zone without warning, without notice, without consultation and I think we were quite right to raise our concerns."
The United States is ignoring the declared no-fly zone and has sent two B-52 bombers over the area without notifying China.
The flight signifies US support for Japan, with which Washington has a security pact.
China has not responded to the US snub, but foreign ministry spokesman Qin Gang insists the no-fly zone is legitimate.
(Translated) "So China's imposition of the 'East China Sea Air Defense Identification Zone' is exercising our legitimate self-defence rights. We had notified relevant countries on relevant issues before making the announcement. We are willing to work together with relevant countries to strengthen communication in order to maintain regional peace, stability and flight safety."
Ms Bishop's criticism of China comes as Australia tries to secure a free trade agreement with the Asian giant within twelve months.
The Foreign Minister says she doesn't believe her comments will affect Australia's chances of securing a deal.
But Opposition leader Bill Shorten is calling on the government to explain its foreign affairs dealings, pointing to a number of areas of tension.
"I think it's fair to say that the federal government has got a number of spot fires which have emerged - Indonesia, they've got how they handled this complex situation over the Senkaku islands, they've promised to have a free trade agreement within 12 months with three countries in Asia. We just want the federal government to get it right. We think that they should explain their policies to the parliament and to the Australian people."
The Abbott government says the relationship with Indonesia is on the mend.
Indonesian President Susilo Bambang Yudhoyono is insisting a code of ethics must be signed by him and Tony Abbott before the relationship can be fully normalised.
But the Prime Minister has agreed to an Indonesian proposal that trusted envoys should meet to discuss relations between the two nations.
Ms Bishop says it's not yet clear if she will be involved.
"These details haven't been worked out yet. It's in the early e Prime M3days. We received President Yudhyono's letter and we're working through with the Indonesian government on how we can best advance the matter but we're doing it in a spirit of cooperation. It is a positive step forward and we're looking forward to normalising relations with Indonesia as soon as possible."
As the spying row between Australia and Indonesia settles, East Timor is reigniting the dispute over alleged Australian espionage dating back to 2004.
East Timor is repeating claims Australia bugged its leaders during delicate negotiations on the Timor Sea resources treaty which saw the nations agree to a 50-50 split of gas revenues from the Greater Sunrise gas field.
East Timor is pursuing international arbitration to have the 2006 treaty overturned, a process it launched last December after the Australian government failed to respond to the bugging claims.
The Timor Sea Justice Campaign's Tom Clarke explains.
"East Timor seems to be arguing that the CMATS (Certain Maritime Arrangements in the Timor Sea) treaty is no longer valid because Australia wasn't acting in good faith when it was negotiated. So if it is ruled invalid obviously it's back to the negotiating table."
Former foreign minister Alexander Downer is dismissing the renewed claims, calling them an opportunistic publicity stunt designed to take advantage of the spying row with Indonesia.
Mr Downer says East Timor is trying to use the alleged espionage to invalidate the treaty and secure exclusive rights to billions of dollars in gas royalties.
East Timor says it will halt the arbitration process if the Australian government gives a detailed response to the spying allegations.
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