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China upset about foreign donations row

AAP logoAAP 10/10/2016 Lisa Martin

Beijing is upset "dirty water" has been poured on Chinese-Australians in the wake of controversy over political donations and the Sam Dastyari payment row.

Analysts from an international studies centre affiliated with the Chinese Foreign Ministry expressed concern by what they consider a growing "anti-China sentiment" and a return to "Cold War mentality" in Australia.

Chinese money in the political sphere has been in the spotlight in recent months and the outgoing American envoy to Canberra has urged Australia to reform its political donation regime.

In Beijing the donations saga is considered a matter for Australia's internal politics.

But it's understood the Chinese government considers Australian media reporting on the issue to be biased and aimed at whipping up hysteria to sell newspapers.

The Chinese diaspora in Australia is a bridge for closer ties and a proud section of Australia's migrant community, a government official told reporters.

Senator Dastyari faced a backlash after asking a Chinese businessman to pay a personal debt when he exceeded his parliamentary entitlement for travel.

He resigned from Labor's front bench following reports he had taken a pro-China stance on the South China Sea maritime dispute which is at odds with the party's position.

Political donations to the major parties from dual Chinese Australian citizens and Chinese nationals and companies have also come under fire.

* The reporter travelled to China on a delegation hosted by the Chinese People's Institute of Foreign Affairs.

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