The Chinese Embassy has scolded the Australian media and political class for jeopardising "mutual trust" between the two countries.
The embassy's statement comes after the Turnbull government vowed to curb foreign influence in Australian politics, and after Labor's Sam Dastyari was banished to the opposition backbenches over his dealings with a Chinese businessman.
"China has no intention to interfere in Australia's internal affairs or exert influence on its political process through political donations," an embassy spokeswoman said on Wednesday.
Australia's reputation as a multicultural society is being tarnished by "fabricated" news stories with a Cold War mentality, she said.
She said the reports "made up out of thin air" and filled with ideological bias, reflected a typical anti-China hysteria and paranoia.
"The relevant reports not only made unjustifiable accusations against the Chinese government, but also unscrupulously vilified the Chinese students as well as the Chinese community in Australia with racial prejudice, which in turn has tarnished Australia’s reputation as a multicultural society," she said.
"Some Australian politicians and government officials also made irresponsible remarks to the detriment of political mutual trust between China and Australia. We categorically reject those allegations.
"China has no intention to interfere in Australia’s internal affairs or exert influence on its political process through political donations.
"We urge the Australian side to look at China and China-Australia relations in an objective, fair and rational manner," the spokeswoman said.
Meanwhile, former trade minister Andrew Robb has hit out at his former coalition colleagues for painting him as treasonous, as the government eyes foreign interference laws.
Mr Robb, who took up a job with Chinese firm Landbridge Group after leaving parliament, might have to sign up to a register under the planned crackdown.
He said attempts to trash his reputation in some quarters were ill-informed and cheap politics.
