Liberal backbencher Gladys Liu has admitted she was a member of a Chinese government propaganda unit in a sudden shift in position that has deepened a dispute over her loyalty to Australia.

The federal government has closed ranks around the first-term Victorian MP, dismissing allegations of her links to Beijing as "offensive" as it was forced to mop up a disastrous television appearance where she could not answer questions over her ties to Beijing.

Liberal MP Gladys Liu in Parliament House on Wednesday. Credit:Alex Ellinghausen

Prime Minister Scott Morrison is facing calls from the opposition and cross bench to reassure the public that Ms Liu is a "fit and proper" person to be in Parliament, including questions about whether the Australian Security Intelligence Organisation should check on any links to the Chinese government.

Having previously denied any association, Ms Liu confirmed she was an honorary member of the Guangdong provincial chapter of the China Overseas Exchange Association between 2003 and 2015.