Businesses with Chinese connections gave Australia's major parties more than $5.5 million between 2013 and 2015, making them easily the largest source of foreign-linked donations.

Key points: ABC investigation reveals details of Chinese donors to Australian political parties

ABC investigation reveals details of Chinese donors to Australian political parties Owning strategic infrastructure part of Chinese policy

Owning strategic infrastructure part of Chinese policy Defence agencies increasingly uneasy about China's influence

Defence agencies increasingly uneasy about China's influence That unease is reflected in rejection of Chinese bid to control Ausgrid

An ABC investigation of public declarations and company information shows some have strong ties with state organisations in China.

It helps explain why Australian defence and intelligence agencies are increasingly uneasy about the level of Chinese Government influence here.

That concern stretches from influence-buying in politics, through investment in critical infrastructure to control over local Chinese-language newspapers, radio stations and community associations.

The most public sign of that disquiet was the rejection of two Chinese bids for a controlling interest in NSW electricity distributor Ausgrid.

National security agencies were, in the words of one defence source, "unanimous and unequivocal" in their advice to slap down the bid, although he hastens to add the decision was "not country-specific".

But owning strategic infrastructure, like ports and power, is a declared part of Chinese foreign and strategic policy.

It's a crucial element in the efforts to economically dominate Eurasia through the "one belt one road" initiative, which also demands control over the South China Sea.

It's the backdrop of a more assertive China in the East and South China Seas that is ringing alarm bells in Canberra.

Beijing angrily rejected a ruling of an international tribunal that disputed its push to assert sovereignty over territory it is securing through a chain of reclaimed and militarised islands.

It will underline that next month when it holds war games with Russia in the disputed waters.

Beijing's view is echoed in Australia across a "united front" network of Chinese-language media and community organisations.

Prior to the tribunal's ruling, Canberra-based Chinese organisations met at the Chinese Embassy, where they were exhorted by the ambassador to "serve the development of their ancestral homeland".

A month later, the ACT Federation of the Chinese Associations wrote to the Prime Minister, berating him for Australia's position on the South China Sea.

"It hurts the feelings of the vast number of Chinese Australians to see Australia itself on the verge of contributing to the destabilisation of the sensitive South China Sea region," the letter said.

The ABC has sought comment from the Chinese Embassy over whether it has encouraged local organisations to protest on its behalf.

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Australia 'needs to understand how China ticks'

Swinburne University Professor John Fitzgerald said many Australian-based Chinese community groups had close links with the Chinese Government.

"I'm not sure that the Chinese Government itself is actively coordinating or driving what they do," he said.

"But they are keen to remain onside."

That was amply demonstrated three weeks ago when about 1,500 Australian-Chinese citizens and residents took to the streets of Melbourne to protest against the United Nations ruling.

The pro-China protest in Melbourne. ( CRIEnglish.com )

"The South China Sea belongs to China," one of the protesters said.

Professor Fitzgerald has studied the growing influence of Beijing over Australia-based Chinese language media and he estimates about half is closely aligned with the Chinese Government.

It goes deeper still, with major English-language newspapers here effectively publishing propaganda, while the ABC censors its broadcasts into China.

"Looking overall it seems to me that the Chinese Government can buy in Australia what it took decades of repression and suppression to achieve in China," Professor Fitzgerald said.

"That it's managed to secure control of media outlets here and to exercise the kind of propaganda bureau control within Australia that it took a revolution to establish in China."

China is maintaining is assertive stance in the South China Sea. ( Reuters )

When it comes to China, former prime minister Tony Abbott once said Australia oscillated between "fear and greed". Australia needs Chinese investment but clearly has deep concerns it be the right kind of investment.

The founding director of China Matters, Linda Jakobson, believes the 11th-hour decision to reject the Chinese bids on Ausgrid set a bad precedent.

"Investors need clarity, they need predictability, they need reliability," Ms Jakobson said.

"If there was a question of national security with this bid and with the whole deal it was well known long ago and it should have been made clear to the two Chinese bidders long ago. To wait until this point was detrimental to Australia's national interest."

Ms Jakobson said Australia needed to get a better understanding of "how China ticks" and that the Government and business needed to work in tandem on developing a strategic plan for dealing with the awakening giant.

"It's not going to be easy," she said. "You've got to keep a focus on those fantastic opportunities that cooperation with China offers and at the same time you've got to not only, of course, protect security interests, you've got to uphold the values that underpin Australian society."

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