The dispute broke about after an "insolent" conduct of a Chinese envoy, described by the Nauru President as "bully" for speaking out of turn.
Nauru hosted leaders of 18 Pacific nations plus delegations from non-member countries including the United States and China, for the forum.
The row took place when Nauru’s President Baron Waqa refused to give way when the representative of Chinese delegation Du Qiwen , asked to be allowed to address the forum before the Prime Minister of Tuvalu on Tuesday.
As per AFP, the Chinese delegation then stormed out, with Du reportedly striding around the room to emphasise his displeasure before leaving.
Waqa said that he had not allowed China to speak as protocol dictated that he allow prime ministers and ministers to speak before diplomats.
AFP quoted Waqa as saying: “ I have to be strong here because no one is to come and dictate things for us," Waqa said. "It's about the way they treated us, they're not our friends. They just use us for their own purpose, for their own will."
In a video that was shared on Twitter by the Republic of Nauru, Waqa was heard saying: “We won't just seek an apology, we will actually get the forum to do it...as well as our own and we will even take it up to the UN”.
The major source of Nauru’s tension with Beijing is its support for Taiwan. While Nauru maintains diplomatic ties with Taiwan, China believes it to be wayward province to be taken by force if necessary.
China’s foreign ministry which did not immediately respond to the dispute, later said in an editorial in the state-run tabloid Global Times, that the dispute was related to Nauru’s recognition of Taiwan.