A diplomatic rift opened up between China and Australia over concerns that China has been buying influence by using rich businessmen to funnel millions of dollars in donations to political parties. Australia is currently reviewing its espionage laws and looking to ban foreign political donations. A recent investigation conducted by Fairfax Media and the Australian broadcaster ABC shows that A$6.7 million donations were paid to Liberal and Labour parties by billionaires Huang Xiangmo and Chau Chak Wing. The investigation report alleges that Australia’s intelligence agency warned against accepting these donations as the two billionaires were closely linked to China’s Communist Party, which was not heeded of course.

Last year, a Labour Party senator Sam Dastyari was toppled from his position after it was revealed that he accepted Thousands of dollars from Mr. Huang’s Yuhu Group and used it to pay for his travel and legal bills. Mr. Dastyari also attracted criticism when in an interview with the Chinese media, publicly called on Australia to respect China’s territorial claims in the South China Sea. The Fairfax/ABC investigation also alleges that Mr. Dastyari had intervened on behalf of Mr. Huang with Australia’s department of immigration over the businessman’s application for citizenship as it had been stalled by Australia’s Intelligence agency.

Australian Prime Minister Malcolm Turnbull issued a thinly veiled rebuke to China for its interference in the domestic affairs by saying, “Just as modern China was based on an assertion of national sovereignty, so China should always respect the sovereignty of other nations, including, of course, our own”.