Turnbull urges China to refrain

Prime Minister Malcolm Turnbull is urging China to refrain from coercive action following an international court ruling on the South China Sea.

Mr Turnbull says the decision by the Permanent Court of Arbitration in The Hague declaring China having no historical title over the sea must be respected by both sides.

"There is so much at risk in the event of conflict, in the event of heightened tensions, so this is an important decision," he told reporters in Canberra on Wednesday.

Foreign Minister Julie Bishop criticised a call from Labor urging Defence to conduct freedom of navigation exercises.

It would lead to an escalation of tensions.

"I think that's a highly irresponsible call at this point," she said.