Gladys Liu reduced to tears as Morrison hits back at China 'smear'

Scott Morrison has launched a spirited defence of embattled Liberal MP Gladys Liu, hitting out at Labor in Federal Parliament for implying she was "disloyal" to Australia following a string of revelations about her past associations to Chinese groups.

The Prime Minister accused the opposition of "casting a smear on Chinese Australians", after it questioned whether the Morrison government had received warnings from Australia's spy agency about the Victorian backbencher.

Gladys Liu appeared to wipe away tears on Thursday.Credit: Alex Ellinghausen

Ms Liu broke down during the exchange in Question Time, wiping her face with a handkerchief as Mr Morrison went on the attack.

"Just because someone was born in China doesn't make them disloyal," Mr Morrison told Parliament.

"She's a great Australian who deserves to be in this house."

Ms Liu took to social media on Thursday night, saying media speculation she had once "worked or volunteered" for the Chinese Consulate in Melbourne was "completely false".

She has faced a string of questions this week over her past associations to Chinese community groups, which had been previously undeclared, and her role in Liberal party fundraising.

Having originally denied any association, Ms Liu confirmed on Wednesday 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 has since merged a known propaganda arm of Beijing - the Chinese Communist Party's United Front Work Department.

The Herald Sun also reported on Thursday senior Victorian Liberals were told the intelligence community had warned the party against preselecting Ms Liu for Melbourne's eastern suburb seat of Chisholm before this year's federal election.

Former Liberal Party president Michael Kroger said he had not heard of any concerns being raised.

Mr Morrison said Ms Liu was guilty of giving "a clumsy interview" on Sky News Australia on Tuesday night but had since explained herself and circumstances.

He hit out at Labor's shadow attorney general, Mark Dreyfus, saying anyone who'd sat on the government's National Security Committee knew they could not "offer commentary on inquiries of that nature".

"The intent is to infer ... against a member of this House, disloyalty to this country, and that
member has in some way been the subject of some investigation," he said.

"He should have a good hard look at the 1.2 million Australians who will see exactly what he is doing to Australians of Chinese descent."

Prime Minister Scott Morrison sits with Liberal Gladys Liu during a division in the House of Representatives.Credit: Alex Ellinghausen

Mr Morrison had earlier on Thursday sat beside Ms Liu in Parliament in a public sign of support for the MP as Labor attempted to force her to deliver a statement to Parliament.

Mr Dreyfus seized on Mr Morrison's past comments about ex-Labor senator Sam Dastyari, who was forced to resign over his dealings with Chinese businessmen.

"The ridiculous hypocrisy of all of the people in the government benches, starting with the Prime Minister and including the member for Chisholm, is on full display for the Australian people to see," Mr Dreyfus said.

Independent MP Rebekha Sharkie supported Labor's motion, saying it went to the "confidence" of MPs in the Parliament and said the government should not "run a protection racket".

Mr Morrison said those attacking Ms Liu, the first a Chinese-Australian woman elected to Parliament, should be "celebrating" her election, "not attacking it".

Ms Liu said in a statement on Wednesday people must not see "everything I do through the lens of my birthplace".

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