The fallout from concerns about the growing influence of foreign-linked donations in Australian politics has reached China, with nationalist newspaper the Global Times attacking anti-Chinese hype and paranoia.

Labor powerbroker Sam Dastyari has also fired back at Malcolm Turnbull, calling the Prime Minister's suggestion he had operated under a "cash for comment" arrangement with Chinese-Australian interests "disgusting and offensive".

The Global Times, which has forged a reputation for its feisty criticism of anti-Chinese decisions and sentiment, has now accused Australians of paranoia and "hyping up the alarm towards China, which baffles Chinese society".

"The news that Labor senator Sam Dastyari from New South Wales accepted political donations from a Chinese man has caused quite a stir," the editorial said.