Gladys Liu's Beijing confession deepens dispute over loyalty

Liberal backbencher Gladys Liu has admitted she was a member of a Chinese government propaganda unit in a sudden shift in position that has deepened a dispute over her loyalty to Australia.

The federal government has closed ranks around the first-term Victorian MP, dismissing allegations of her links to Beijing as "offensive" as it was forced to mop up a disastrous television appearance where she could not answer questions over her ties to Beijing.

Liberal MP Gladys Liu in Parliament House on Wednesday.Credit: Alex Ellinghausen

Prime Minister Scott Morrison is facing calls from the opposition and cross bench to reassure the public that Ms Liu is a "fit and proper" person to be in Parliament, including questions about whether the Australian Security Intelligence Organisation should check on any links to the Chinese government.

Having previously denied any association, Ms Liu confirmed she was an honorary member of the Guangdong provincial chapter of the China Overseas Exchange Association between 2003 and 2015.

At that time the association was an arm of the Chinese government's central political and administrative body.

But the Hong Kong-born MP said people must not see "everything I do through the lens of my birthplace".

"I hope that they will see more than just the first Chinese woman elected to Parliament," Ms Liu said in a statement.

"I am a proud Australian, passionately committed to serving the people of Chisholm, and any suggestion contrary to this is deeply offensive."

She said she was now auditing any organisations who list her as a member without her knowledge or consent, saying some Chinese associations had appointed people to honorary positions without their permission.

"I do not wish my name to be used in any of these associations and I ask them to stop using my name," Ms Liu said.

Senior government figures are bracing for "more to come" in the saga, with experienced staff likely to be deployed to Ms Liu's office by the end of the week.

Ms Liu had not notified anyone in the government of her decision to appear on Sky News Australia with presenter Andrew Bolt to answer questions over her past associations raised by the ABC on Tuesday.

Foreign Minister Marise Payne said it was "offensive" to suggest that Ms Liu's previous associations suggested she was not fit and proper to sit in Parliament.

"The member is duly elected as the representative of the people of Chisholm," she said.

Labor's shadow attorney-general Mark Dreyfus accused Ms Liu of issuing a statement "written by the foreign minister" and said the the government had more questions to answer.

"We've got here, on its face, the potential for direct links between a newly elected Member of Parliament and the propaganda arm of the Chinese Communist Party," Mr Dreyfus told the ABC.

"It's not good enough because she needs to front the Parliament, as does the Prime Minister."

Mr Dreyfus said if spy agency ASIO had previously explored links between Chinese Communist Party propaganda arms and other members of state parliaments, the same scrutiny must be given to the every member of the federal Parliament.

Centre Alliance senator Rex Patrick said the revelations about Ms Liu were a "cause for serious concern" and said Mr Morrison should "seek advice from ASIO".

"She needs to think long and hard about her past connections and needs to be open and upfront about what occurred," Senator Patrick said.

Ms Liu said, as a new MP, she would be "learning from the experience".

She also clarified that she does not believe China is a democracy and reaffirmed her support for Australia's stance on its military expansion in the South China Sea.

"Last night in a TV interview I was not clear and I should have chosen my words better," she said.

"Australia's longstanding position on the South China Sea is consistent and clear. We do not take sides on competing territorial claims but we call on all claimants to resolve disputes peacefully and in accordance with international law."

Labor's foreign affairs spokeswoman Penny Wong compared the situation with Liberal Party calls in 2017 to force out ex-ALP senator Sam Dastyari for his links with Chinese donors.

"I can recall the Liberal Party making Sam Dastyari a test for the Labor leadership. This is Scott Morrison's test."