Australian ambassador to the US Joe Hockey says reports of Chinese interference are being closely watched.
America is closely watching the argy-bargy between Australia and China over allegations of foreign interference and political donations.
The Chinese embassy in Canberra issued an extraordinary statement this week scolding the Australian media and political class for jeopardising "mutual trust" between the two countries.
It followed the Turnbull government's plan to curb foreign influence in Australian politics and Labor's Sam Dastyari being banished to the opposition back bench over his dealings with a Chinese businessman.
Australian ambassador to the US Joe Hockey says Washington is monitoring the situation.
"It's being very closely watched," Mr Hockey told the Australian National University, adding it was important in the context of allegations of Russian interference in US and UK elections.
"There is obviously a fair bit of evidence (China) have sought to influence policymaking in Australia."
Asked if the US was worried about Australian politicians being bought off by the Chinese, Mr Hockey said "and ex-politicians" but declined to name names.
Meanwhile, Mr Hockey gives US President Donald Trump a gold star for economic management.
Mr Hockey pointed to the unemployment rate decreasing, wages growth and US gross domestic product increasing at a 3.3 per cent annual rate in the third quarter.
"It's real growth, that's not an inflated Trump hit," Mr Hockey said during an appearance at the Australian National University in Canberra on Friday.
"He's done a lot in the first year. A hell of a lot of reducing regulation, red tape."
Mr Hockey said there was visible momentum in the US economy.
For the first time since 2000, the number of Americans who believed the economy was headed in the right direction exceeded the number who did not, he said.
Mr Hockey acknowledged Mr Trump's unorthodox leadership style.
"He has disrupted traditionally what Washington does, which is (having) processes and proper procedures," he said with a laugh.
He played down the turmoil in the White House and the revolving door of staff.
"Everyone tends to go through that," Mr Hockey said, adding it would not matter to the people in rural America who supported Trump.