An associate professor at University of Auckland says a promised policy change by Taiwan could harm Pacific Island countries linked to Taipei.
Bill Hodge says a pledge by Taiwan's president-elect Ma Ying-jeou to immediately end chequebook diplomacy could harm countries that rely on the money.
Australia's foreign minister Stephen Smith says chequebook diplomacy is not a sensible way to proceed, and Australia's position has been made clear to a number of governments.
Taiwan has diplomatic recognition from six Pacific countries which enjoy financial support from Taipei.
Recently, a former Australian foreign minister, Alexander Downer, claimed Taiwan had been bribing politicians in the South Pacific and undermined Australian efforts to try to clean-up corruption.