China's ambassador to Australia has denied his country offered any financial incentive for Nauru to break diplomatic ties with Taiwan.
The decision of the Nauru government to recognise Beijing as the sole legal government of China over Taiwan was purely independent, Xiao Qian said.
The recognition of the People's Republic of China as the sole legal government was due to "the overwhelming, increasing consensus in the international community that in this world, there's only one China and Taiwan is part of China".
"That is not a prerequisite or precondition or criteria," he told reporters in Canberra on Wednesday when asked about a diplomatic quid pro quo in exchange for developmental assistance.
Asked about whether China would push to sign a bilateral security agreement with Nauru following the diplomatic switch - as it did with the Solomon Islands - the ambassador maintained Beijing was transparent about all its agreements.
Australian officials in both Canberra and the embassy in Beijing were made aware of what China was doing in the region, he said.
"It's transparent, it's a friendly kind of relationship," he said, adding there was room for Australia and China to co-operate in the Pacific.
"China has no ... ulterior motive, we're just developing our relations with these countries just like we have been developing relationships with countries in other parts of the world."
Switching diplomatic ties would benefit Nauru economically, its government said in a statement announcing the decision.
Taiwanese media citing diplomatic officials reported the decision came after Nauru requested $125 million for a regional processing centre and was not met with a positive response.
Nauru didn't discuss the matter with Australia, Pacific Minister Pat Conroy said.
