The Federal Government is intensifying its attacks on Labor frontbencher Sam Dastyari over his acceptance of funds linked to China, calling for him to be dumped from the Opposition frontbench.

Senator Dastyari, who holds the position of Manager of Opposition Business in the Senate, has conceded he should not have asked a company with links to Beijing to cover a personal travel debt of $1,670.

But he has rejected Government claims that his political views on China have been influenced by overseas donations.

Prime Minister Malcolm Turnbull, speaking from the G20 summit in China, accused Senator Dastyari of undermining Australia's foreign policy.

"Back home, Bill Shorten is standing up for Sam Dastyari's right to take cash from a company, associated with a foreign government and then express a view on foreign policy that undermines the Australian Government's foreign policy, which has had been supported by Mr Shorten himself."

Mr Turnbull was referring to a Chinese media report during the election campaign.

Senator Dastyari is quoted as saying: "The South China Sea is China's own affair. On this issue, Australia should remain neutral and respect China's decision."

When the ABC put those comments to Senator Dastyari today, he replied in a statement that he was "not responsible for how the Chinese media reports my comments".

"I support the position of the Labor Party on the South China Sea and all other foreign policy matters."

Cabinet Minister Christopher Pyne told Radio National there was a pattern of behaviour that required further investigation.

"The seduction of Sam Dastyari has obviously been going on for some time," Mr Pyne told Radio National.

Treasurer Scott Morrison also weighed in, labelling the senator "Shanghai Sam" and arguing that Government frontbenchers have been stood down for less.

"At the end of the day, this is really about Mr Shorten's judgment," Mr Morrison said.

Shorten dismisses calls for action

Opposition Leader Bill Shorten accused Mr Pyne of "hyperventilating", and said calls by Liberals for the Opposition to show party discipline were "hardly news".

"I've spoken to Mr Dastyari, he should have paid this himself and I've certainly explained to him my unhappiness with what he's done," Mr Shorten said.

"He has made clear to me that he's learned his lesson."

Mr Shorten called on Mr Turnbull to use his attendance at a series of international summits to argue against overseas donations.

"When Mr Turnbull meets business leaders overseas, he has the opportunity to make it clear donations from foreign interests should not be given to Australian political parties," he said.

Labor has previously pushed to ban foreign donations, ban anonymous donations above $50, reduce the donation disclosure threshold from $13,000 to $1,000 and introduce new offences for abuses of the disclosure process.

Dastyari donations trail

Senator Dastyari billed Top Education Institute, a company with links to China, for the travel bill incurred by his office.

He also declared that Yuhu Group — a subsidiary of a state-linked operation based in China — helped settle a legal matter for him in 2014.

In the same year, Senator Dastyari revealed the Australia China Relations Institute paid to cater an afternoon tea for him.

Flights, accommodation and hospitality for a 15-day trip to China in 2014 were funded by the Australian Fellowship of China Guangdong Associations Incorporated.

And a nine-day trip in January this year was supported by the China Australian Guangdong Chamber of Commerce Incorporated.

The Government has further pointed to donated bottles of wine from Yuhu Group: two bottles of Penfolds Grange.

The senator said he donated the wine to the Exodus Foundation, an organisation to assist young people and families who are homeless.

