The former Secretary of State compared China's "under the radar" efforts to the way Russian actors used covert social media campaigns to influence the 2016 U.S. election.
Hillary Clinton warned Australia must stand up to the creeping influence of the Chinese Communist Party before it spreads, and drew parallels between its actions and that of Russian interference in the 2016 USA election.
Mrs Clinton said repeated calls for the U.S. to use a "steady hand" when it comes to talks with North Korea about dismantling its nuclear weapons development and testing program.
Hillary Clinton recently took another trip overseas where she discussed her 2016 election loss to Donald Trump.
During an interview with Australia's first female prime minister Julia Gillard this week, Hillary Clinton once again rehashed the 2016 election and brought back one of her favorite excuses for her unexpected loss - sexism.
Former US secretary of state Hillary Clinton fears the rise of authoritarianism and illiberal democracies like Russian Federation has left the world at a unsafe crossroads.
She said: "Australia, along with other liberal democracies around the world, have got to take the threat of foreign interference seriously".
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Former Australian Prime Minister Julia Gillard with Hillary Clinton.
She said: "Whether it's Russian Federation in a secret way interfering with our election and producing more than 3,500 ads to try and confuse our electorate to try to damage me, to the Chinese looking to influence policy, we should say no".
But Ms Clinton warns that 'It's not just happening in the United States.
'This is an urgent problem and one we must confront immediately and together, ' she declared.
Hillary Clinton has fears over China's growing persuasion in the Asia-Pacific, and on Thursday night issued a warning to Australia to be vigilant to outside influence and to 'protect Australia's interests'.
In December, Australia's Prime Minister proposed banning foreign political donations, citing "disturbing reports about Chinese influence".