Clinton said the Asia-Pacific stands to gain from the continued peaceful rise of a strong and prosperous China.

"The entire region can benefit from a peaceful rise of China and as I've said many times we welcome a strong and prosperous China that plays a constructive and greater role in world affairs.

"The Pacific is big enough for all of us and we stand to benefit from increased cooperation across the Asia-pacific region as long as level playing field," she added.

U.S. and Australian officials also touched on Australia's deepening future involvement in the U.S. strategic "pivot" to Asia, post-2014 deployment in Afghanistan, as well as issues as complex as cyber warfare and space debris.

Australian Foreign Minister Bob Carr told reporters that AUSMIN outcomes included the commissioning of a social impact study to further determine the public response to the rotation of U.S. marines in Darwin as well as confirming the greater use of Australian airports and naval bases by U.S. military.

This morning Clinton and Secretary of Defense Leon Panetta joined Senator Carr and Defense Minister Stephen Smith, in a wreath-laying ceremony at the World War One memorial to Australian soldiers in Perth's Kings Park.

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