sino-australian relations

Former US spy chief Clapper warns Australia of foreign interference after political donations by Chinese billionaires

Australia has ordered an inquiry into espionage laws and foreign government interference

PUBLISHED : Wednesday, 07 June, 2017, 12:11pm
UPDATED : Wednesday, 07 June, 2017, 11:12pm

Australia must be alert to foreign government interference in its democratic systems, former top US intelligence official James Clapper warned Wednesday, after China was accused of meddling in the country’s politics.

Canberra has ordered an inquiry into espionage laws and foreign government activities after a media investigation this week into large political donations by two Chinese billionaires with reported links to China’s Communist Party.

The probe, by the Australian Broadcasting Corporation and Fairfax Media, said intelligence agencies had major concerns that Beijing was interfering in Australian institutions and using the political donations system to gain access.

Clapper, the US director of national intelligence under Barack Obama, told the ABC he sees some similarities between China’s efforts and what Moscow attempted in his own country.

Australia considers ban on foreign political donations in response to deepening concerns about Chinese influence

“They are seeking ways to influence using many techniques; diplomatic, economic, military that they haven’t done before,” he said.

“It’s focused here, it’s focused regionally and focused globally.”

Russia has been accused of meddling in the US election last year, and of possible collusion with the campaign of Donald Trump.

Clapper said the challenge both Washington and Canberra faced was “the potential jeopardy to the very fundamental underpinnings of our political system”.

The Australian media investigation showed that property developers Huang Xiangmo and Chau Chak Wing, or their associates, had donated around AUD$6.7 million ($5 million) to political parties over a decade.

China’s foreign ministry on Tuesday called the reports “totally groundless”, and Huang, who is chairman of the Yuhu Group, told the Financial Times it was regrettable that people were undermining his reputation based on assertions and innuendo.

“While some seek to reinforce negative stereotypes about Chinese involvement in Australia, I am committed to more positive pursuits, such as investment, philanthropy and building stronger community relations,” he said.

Still, Prime Minister Malcolm Turnbull was concerned enough to order a review of espionage laws and legislation around the activities of foreign governments.

“The sovereignty of Australia, the sovereignty of our democratic processes, free from foreign interference, is a matter of the highest concern,” he said.

The attorney general, George Brandis, has promised tougher laws will come to parliament by the end of the year.

“The threat of political interference by foreign intelligence services is a problem of the highest order and it is getting worse,” Brandis said in a statement.

While regulated, political donations from foreign interests remain legal in Australia, unlike the United States, which is something Clapper suggested should be looked at.

“It’s hard for me to rationalise why that is a good thing to do, why that has a salutary benefit of allowing foreign donations to influence potentially our politics,” said Clapper, who is a visiting professor at the Australian National University.

Additional reporting by The Guardian