Billionaire Chinese donor Huang Xiangmo’s return to Australia blocked by Canberra

A Chinese businessman from an elite Sydney suburb who gave millions in donations to both Labor and the Liberal Party has been stranded overseas after officials blocked his bid for Australian citizenship.

A Chinese businessman who donated millions to both Labor and the Liberal Party has been stranded overseas after officials blocked his bid for Australian citizenship.

In a move that could prompt an angry response from Beijing, Australian officials have declared Huang Xiangmo unfit to hold an Australian passport and have cancelled his permanent residency.

Mr Huang - who has donated almost $2.7 million to Australian political parties in five years - was thrust into the spotlight over his links to former Labor senator Sam Dastyari.

Huang Xiangmo (left) was thrust into the spotlight over his links to former Labor senator Sam Dastyari (right). Picture: Supplied

It later emerged the nation’s spy agency ASIO had warned Australia’s three major political parties to be wary of accepting donations from the businessman over his suspected links to the Chinese Communist Party.

Government sources have reportedly told Nine Newspapers Mr Huang was denied a passport for a range of reasons, including character grounds and concerns about his answers in official interviews and correspondence with authorities.

Officials spent more than two years considering his bid for citizenship, including assessing his ties to China’s ruling party.

Huang Xiangmo (left) with former prime, minister Malcolm Turnbull at the 2016 Chinese New Year Lantern Festival. Picture: Supplied

It is understood Mr Huang is now planning to mount a legal fight to return to Australia.

Nine Newspapers report he may be able to challenge the decision with the Administrative Appeals Tribunal but an official was quoted as saying it would take “a very long time”.

Both the Labor and Liberal party will now come under pressure over donations they have accepted from Mr Huang in recent years.

The Liberal Party did not directly respond to News Corp queries about whether it would return, keep or donate the money received from Mr Huang.

A spokesman said the Morrison Government had “taken action to protect the integrity of Australia’s electoral system by legislating a ban on foreign political donations, which came into effect on 1 January”.

“The Liberal Party fully complies with this ban and all other laws relating to donations,” he said.

Australian Strategic Policy Institute executive director Peter Jennings told News Corp any backlash from China would be little more than a public rebuke from the foreign ministry spokesperson and potentially an article in the state-owned newspaper The Global Times.

“I suspect that Beijing will conclude that Huang will really not be helpful to them in terms of the profile he has gained in recent years,” Mr Jennings said.

“There’s been a lot of publicity and controversy.”