China says some Australian politicians have reached "a state of hysteria" and "extreme nervousness" following reports Beijing tried to plant a spy in the Federal Parliament.

Key points: China's foreign ministry spokesman Geng Shuang said some Australian MPs had been "highly tense" on China-related issues

China's foreign ministry spokesman Geng Shuang said some Australian MPs had been "highly tense" on China-related issues He called stories on Chinese espionage and infiltration in Australia "nothing but lies"

He called stories on Chinese espionage and infiltration in Australia "nothing but lies" Mr Geng also slammed the China Cables leak on repression in Xinjiang as a "smear" campaign

Over the weekend, the Nine media group detailed explosive allegations that Chinese operatives offered $1 million to pay for the political campaign of Liberal Party member Nick Zhao to run for a Melbourne eastern suburbs seat.

"I heard that he was a 32-year-old Melbourne resident cultivated by the Chinese Government to run as a Liberal Party candidate," Government MP Andrew Hastie told Channel Nine.

Mr Zhao was found dead in a suburban Melbourne motel room in March, months after he told ASIO of the offer.

When asked about the alleged plot at a regular press briefing on Monday night, Chinese foreign ministry spokesman Geng Shuang said some Australian politicians, institutions and media "have been highly tense on China-related issues".

"They seem to have reached a state of hysteria and extreme nervousness," he said.

"Stories like 'Chinese espionage' or 'China's infiltration in Australia', with however bizarre plots and eye-catching details, are nothing but lies."

Mr Geng said China was not interested in interfering in other countries' affairs. ( MOFA )

Mr Geng urged Australian politicians, institutions and media to view China and China-Australia relations with "a healthy attitude" in the interest of bilateral relations as well as their "own physical and mental health".

He added China was not interested in interfering in other countries' affairs.

At the same time, Mr Geng slammed the media coverage of a leaked cache of highly classified Chinese Government documents on Xinjiang on Monday as a smear campaign, adding "Xinjiang affairs are China's internal affairs".

The so-called China Cables leak provides a rare insight into what has been described as a dystopian world of surveillance, detention, re-education and forced labour designed to assimilate and pacify Xinjiang's Muslims.

The documents dating from 2017 were obtained by the International Consortium of Investigative Journalists (ICIJ) and shared with ABC News and 16 other international media partners.

They tell how 23 Australian citizens were identified among 75 people from China's Muslim minorities who were singled out in the surveillance sweep because of their passports.

"Certain media are trying to smear China's counter-terrorism and de-radicalisation efforts in Xinjiang by despicably hyping up Xinjiang-related issues, but their attempts will not succeed," Mr Geng told journalists.

"Stability, ethnic solidarity and harmony in Xinjiang is the best response to such disinformation."

China lashes Australian media over report

Wang Liqiang told the Nine network's 60 Minutes program he was a former Chinese intelligence agent. ( Supplied: 60 Minutes Australia )

Asked about the allegations made by Wang Liqiang, a man who says he is a former Chinese intelligence operative and is currently seeking asylum in Australia, Mr Geng reiterated claims published in state media last week referring to Mr Wang's alleged criminal record.

Mr Wang has denied that he has a criminal record. He told The Age newspaper, through a lawyer, that he gad given Australian officials a sworn statement and stood by it, knowing the serious consequences of making false statements.

Speaking on Nine's 60 Minutes program, Mr Wang said he had worked as a Chinese intelligence agent for five years, and played a role in an operation in Hong Kong aimed at infiltrating the city's universities and media organisations.

Mr Geng accused members of the Australian media of using Mr Wang's allegations to make "smear campaigns" and "[hype] up [the] so-called 'China threat'".

"Our advice to those Australian media and people is to respect the truth … stop doing things that are ridiculous and irresponsible," he said.

Former public servant Yun Jiang and Macquarie University researcher Adam Ni, co-editors of the newsletter China Neican, wrote yesterday that they thought the account Mr Wang gave 60 Minutes was "unconvincing so far".

"Many of Mr Wang's public claims are unsupported or uncorroborated based on the available evidence thus far," they wrote.

"If Mr Wang was later discredited, it could undermine the public's trust in Australian media and political leaders … the public may be less inclined to believe foreign interference is a real and credible threat in Australia."

The researchers said much of the evidence presented in Mr Wang's media interviews was "general and vague in nature", and pertained to operations that were already in the public domain.

They also said his alleged role in multiple high-level intelligence operations seemed "highly unusual" given his young age, and said he did not have a rank in the Chinese military, which was "unusual for military intelligence officials".