Senator Sam Dastyari had been deputy whip in the centre- left Labor Party and chairman of a parliamentary committee examining the future of journalism before resigning over his dealings with Chinese Communist Party-linked businessman Huang Xiangmo.
Fairfax Media reported this week that Dastyari gave Huang counter-surveillance advice when they met at the businessman's Sydney mansion in October last year.
Dastyari suggested the pair leave their phones inside the house and go outside to speak in case Australian intelligence services were listening, Fairfax reported. Dastyari has not denied the reports but said he had no knowledge about whether Huang was under Australian surveillance at the time.
Australia maintains that China should respect international law, and an arbitration ruling last year found China's broad claims to the sea were legally baseless.
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But Dastyari told Chinese reporters at a news conference in Sydney attended by Huang that Australia should observe "several thousand years of history" by respecting Chinese claims over most of the South China Sea. The phrasing mirrors China's stance.
"I find the inferences that I'm anything but a patriotic Australian deeply hurtful," he added. "Nonetheless, I'm not without fault."
Government lawmakers today called on Dastyari to quit Parliament because he had been prepared to help a foreign national avoid Australian security surveillance.
The Australian Security and Intelligence Organisation, the nation's main spy agency, said in October it is was unable to keep up with the growing level of "harmful espionage and foreign interference" operations being carried out in Australia.
In 2015, ASIO cautioned against accepting political donations from Huang because he was suspected conduit to the Chinese Communist Party. Huang did not immediately respond to a request for comment today.
With concerns over Chinese political influence in Australia and Russian interference in the US presidential election, an Australian parliamentary committee recommended in March a ban on political donations from foreign companies and individuals.
Unlike the US and many other countries that ban foreign donations, Australian law has never distinguished between donors from Australia and overseas.
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