Mining magnate Andrew 'Twiggy' Forrest says China will eventually become a democracy.

Key points: Forrest describes recent meeting with China's President

Forrest says China's political system helps lift Chinese people out of poverty

But says it will eventually become democracy

But the West Australian billionaire asserts China would not have been able to tackle poverty as quickly as it has under a democratic system.

Mr Forrest has known China's President Xi Jinping for a decade.

He held a meeting with the President in April this year at the annual Boao Forum, which his company Fortescue Metals Group sponsors.

Mr Forrest has strong business and political connections in China, Australia's biggest trading partner.

Federal Parliament is expected to pass new laws soon aimed at cracking down on foreign interference in Australia's politcal system.

Those plans have angered the Chinese Government which has accused the Australian media of fabricating stories about Beijing's influence.

Mr Forrest has recently railed against so-called "immature alarmists" that he accused of fuelling "distrust, paranoia and a loss of respect" by using anti-China rhetoric.

He said Chinese political figures are positive about Australia when they speak to him.

"Whenever I have met a Chinese leader — including President Xi or [Premier] Li Keqiang — they look through the lens of both respect and affection at Australia," Mr Forrest told the ABC.

He described a conversation with Mr Xi where the two men had laid out their goals.

"Mine was laid out: I wanted to end modern slavery in the world," Mr Forrest said.

He said he had congratulated Mr Xi for his progress towards his goal of ending poverty, but said the Chinese President emphasised the task was difficult.

"He said, 'We have climbed 80 per cent of the mountain, Andrew, and anyone can tell you the last 20 per cent is the hardest'," Mr Forrest said.

Asked if China was becoming more authoritarian under Mr Xi, Mr Forrest said: "You know, I think that a democratic system would be big trouble to bring hundreds and millions of people out of [poverty in] China in a short time.

"Over time, China will most likely become a democracy — don't listen to me, listen to the President. But now, it's serving China extremely well."

Earlier this year, the National People's Congress removed the two-term limit for Chinese presidents, allowing Mr Xi to remain in power for life.

Out of 2,964 delegates, just two voted against the constitutional change and three abstained.

Mr Xi's term had been scheduled to expire in 2023.

When asked about Mr Forrest's comments about China's future, Foreign Minister Julie Bishop said: "I think he's quoting the words of President Xi Jinping and over time, political systems evolve, but I haven't seen Mr Forrest's comments in detail."

In March, Mr Xi outlined what Chinese state media described was a, "system of multiparty cooperation and political consultation led by the Communist Party of China".

He said this new system was a, "great contribution to political civilisation of humanity".