Beijing's hopes to developing a marine plan for fisheries holding police training fell short over some countries' concerns over increasing geopolitical tensions and threatening regional stability.
Australia was scrambling to counter the move by sending its own Foreign Minister Penny Wong to Fiji to shore up support in the Pacific.
The announcement comes amid concerns that other Pacific island countries financially weakened by the pandemic and its impact on tourism could be lured by China into similar deals.
A 29-year-old woman tested positive for the coronavirus on Thursday during routine testing before boarding an international flight.
The Pacific Deterrence Initiative aims to beef up the military in the Pacific and work more closely with partners and allies. But some experts are cautious about inflating the Chinese threat.