Allegations of China’s alleged interference bid ‘deeply disturbing’

Scott Morrison says claims China tried to plant a spy MP in Canberra are ‘troubling’ but Australia is ‘not naive to security threats’.

Scott Morrison says allegations China attempted to plant a spy MP in Canberra are “deeply disturbing and troubling” as he defended his government’s policies on combating foreign interference.

The Prime Minister said he was “not naive” to security threats as he pointed to the “significant legal reform” on foreign interference undertaken by the Coalition government.

He noted the claims a Chinese espionage ring offered to fund now-deceased Liberal Party member’s Bo Zhao tilt to the Melbourne seat of Chisholm were already under investigation.

“Australia is not naive to the threats that it faces more broadly,” Mr Morrison said at Parliament House in Canberra.

“That’s why we strengthen the laws, why we increased the resources, that’s why we established the Department of Home Affairs to bring together all of this in a single portfolio, to ensure Australia was in the best possible position to deal with any threats that come our way.

“I can assure Australians that under our government, the resources have never been stronger, the laws have never been tougher, and the government has never been more determined to keep Australians free and safe from foreign interference.”

Mr Morrison said the asylum claims of Chinese spy defector Wang Liqiang would be “assessed on its merits” through the Department of Home Affairs.

“I expect the department to make their decisions in the ordinary course of events, and they will do that. We will honour our obligations, as we always do, under the Refugee Convention,” he said.

ASIO ‘aware’ of claims

ASIO Director-General of Security, Mike Burgess, has issued a rare statement confirming that the spy agency was aware of allegations that China tried to infiltrate the Australian parliament by installing an asset in a Melbourne based seat.

Nine newspapers and the 60 Minutes program have reported that Australian authorities were investigating claims that a Chinese espionage ring tried to install Nick Zhao — a luxury car dealer — in a seat in the eastern suburbs of Melbourne and offered $1 million to bankroll his campaign.

Mr Zhao was found dead in a Melbourne hotel room in March after disclosing the approach made to him by China to ASIO.

“As the Director-General of Security, I am committed to protecting Australia’s democracy and sovereignty,” Mr Burgess said. “Australians can be reassured that ASIO was previously aware of matters that have been reported today, and has been actively investigating them.

Read the full ASIO statement here

“However, in accordance with longstanding practice, I will not comment on this particular operational matter, including any detail of the individuals involved.

“Given that the matter in question is subject to a coronial inquiry, and as not to prejudice our investigations, it would be inappropriate to comment further.

“Hostile foreign intelligence activity continues to pose a real threat to our nation and its security. ASIO will continue to confront and counter foreign interference and espionage in Australia.”

Federal Liberal backbencher Andrew Hastie says he was briefed on Mr Zhao’s death as chair of the parliamentary committee on intelligence and security. “It was surreal, it was like something out of a spy novel happening in Melbourne with impunity,” he told Nine.

Mr Hastie says Australians should be “very concerned” about the alleged plot. “This isn’t just cash in a bag, given for favours, this is a state-sponsored attempt to infiltrate our parliament,” he said.

“Using an Australian citizen and basically run them as an agent of foreign influence in our democratic system. So this is really significant and Australians should be very, very concerned about this.”

Trade Minister Simon Birmingham has said Australia faces “unprecedented levels” of foreign interference, but argued the government was taking appropriate steps to respond to the challenge and protect critical infrastructure and technology.

Senator Birmingham said that Australians should be reassured that the government had put in place additional national security legislation to crackdown on foreign interference and had provided adequate funding to security agencies.

Trade Minister Simon Birmingham. Picture: AAP

“They are on the job doing as we expect of them,” he said. “These reports are reports that would shock individuals.”

It is the second explosive allegation on the weekend of attempts by the Chinese government to influence Australian politics.

China paints defector as a ‘jobless fraud’

China is seeking to discredit a man claiming to be a Chinese spy who has defected to Australia and shared classified intelligence about Beijing’s political interference in Hong Kong and overseas, ­accusing him of being a convicted fraudster and fugitive.

In a statement, Shanghai police said Wang Liqiang, who has ­reportedly given Australian authorities the identities of China’s senior military intelligence officers, was a “convicted fraudster and wanted suspect”.

It comes as Nine newspapers revealed how Wang had defected to Australia, providing details to the Australian government about how Chinese officials funded and conducted operations in Hong Kong, Taiwan and Australia.

Wang said he was personally involved in operations across these locations. He also revealed how Beijing covertly controlled listed companies to fund intelligence operations, Nine newspapers reported.

Chinese authorities are casting doubt on Wang’s story, with Shanghai police saying he was found guilty of car-import fraud in 2016 and given a suspended 15-month prison sentence by a court in east China’s Fujian province.

Wang allegedly defrauded 4.6 million yuan ($653,000) from a business partner.

“Wang Liqiang, the so-called ‘Chinese agent’ reported by foreign media … is unemployed and is a fugitive,” the police statement said. His Chinese passport and Hong Kong resident document were “forged”, police said.

Wang has told the Nine Network he was worried he would be executed if he returned to China. “Once I go back, I will be dead,” Wang told the 60 Minutes program on Sunday. “The Chinese Communist Party can never be trusted.”

The 60 Minutes report alleged Wang gave a sworn statement to ASIO in October saying: “I have personally been involved and participated in a series of espionage activities.” This allegedly included infiltrating Taiwan with a fake identity in order to influence mun­icipal elections. He also claimed to have co-ordinated a “cyber army” to shift political opinion.

“Our work on Taiwan was the most important work of ours — the infiltration into media, temples and grassroots organisations,” he told 60 Minutes. “I gave orders for the kidnapping, I was responsible for organising the cyber army to attack people online.”

Mr Birmingham also said that it was important that the claim for asylum went through proper process.

He argued the case should be considered on an “individual basis” and that it was important for “ministers of the crown not to prejudge that”.

Labor’s defence spokesman Richard Marles has acknowledged there are difficulties in Australia’s relationship with China amid the allegations.

Wang Liqiang. Picture: 60 Minutes

Mr Marles was also cautious on whether Wang should be granted asylum in Australia. He said that it was a “matter which should now play out in accordance with the rules around how asylum is assessed.”

However, he criticised the government for not having a clear approach to how it should deal with Beijing and said the relationship remained critical.

“All of these matters obviously are difficult in the context of the relationship. The relationship remains a fundamentally important relationship to Australia,” he said.

“It’s very important that we have an overarching guiding philosophy behind how Australia manages its relationship with China. That’s something I don’t actually see coming from the government.

“But it’s important that that exists, particularly given that there are issues like this which have arisen in the context of the relationship.”

In Hong Kong, Wang said he was part of an intelligence operation hidden within a listed company which infiltrated the city’s universities and media to counter the pro-democracy movement.

Former federal public servant Yun Jiang warned the Australian government to be cautious in its handling of the defector. Writing in a new online newsletter, China Neican, Ms Jiang said the government could face “negative repercussions” if Wang’s claims turned out to be fabricated.

“No doubt questions will be raised with regard to timing and motives,” she wrote. She added Wang’s claims have “not contained any major surprises”. “But details on identities and tactics could prove useful,” she said.

Additional reporting: EMILY RITCHIE, GLENDA KORPORAAL, AAP