The largest inland city in NSW has voted to sever its China sister city relationship in a move slammed as "racist dog whistling" by a fellow politician.

Key points: The Chinese city of Kunming has had a sister city relationship with Wagga for more than three decades

The Chinese city of Kunming has had a sister city relationship with Wagga for more than three decades The councillor behind the push to sever ties, Paul Funnell, said the council should not have a relationship with a communist regime

The councillor behind the push to sever ties, Paul Funnell, said the council should not have a relationship with a communist regime Wagga Wagga-based MLC Wes Fang said "a dog whistling act about who we're going to punish for COVID-19 is really dangerous"

On Tuesday night, Wagga Wagga City Council narrowly voted to cut ties with its sister city Kunming, a relationship which began in 1988.

The councillor behind the push, Paul Funnell, said the "Chinese Communist Government that delights in lies, subterfuge and coverups" has brought "death and destruction across the world with COVID-19".

He said the council should not have a relationship with a communist regime.

Wagga Councillor Paul Funnell said China's leadership brought "death and destruction … with COVID-19". ( Supplied: Wagga Wagga City Council )

NSW Nationals MLC Wes Fang said the decision was "appalling".

"I will call it out for what I believe it is, racially motivated dog whistling of the worst kind," Mr Fang said

Decision 'about communism, not racism'

Cr Funnell denied it was a racist move.

He said the sister city relationship was between two governments, in this instance the Wagga Wagga City Council and the Kunming provincial government.

"This is not about the people. I mean, obviously everyone's coming out calling it racist, etcetera," Cr Funnell said.

"This is not about the Chinese people. It wouldn't matter where it is. You're not in China, you are not dealing with the people themselves.

"You're actually dealing with the ruling authority which is a communist regime."

Mr Fang said the decision strengthened racist views about Chinese-Australians.

"The events of the past few months have been particularly difficult for those Chinese-Australians who love our country but have been abused because of our name and our looks," Mr Fang said.

"We are better than this as a city, a state, and as Australians."

Wagga Wagga-based Mr Fang said it was important to separate the people of Kunming from the Chinese Government.

"No one is going to defend the Communist Chinese Government, but the people of Kunming have had a sister city relationship with Wagga for more than three decades," Mr Fang said.

"To throw that away because a dog whistling act about who we're going to punish for COVID-19 is really dangerous.

"To blame our sister city for the events in Wuhan is akin to blaming our other sister city Nordlingen in Germany for the events of the past two world wars."

The motion narrowly passed four votes to three, after councillors Dallas Tout and Kerry Pascoe declared an interest in the report and left the room.

Councillors Paul Funnell, Yvonne Braid, and Tim Koschel voted for the motion, while councillors Rod Kendall, Vanessa Keenan, and Dan Hayes voted against.

Councillor Tim Koschel used his deciding vote to pass the motion.

The city's mayor Greg Conkey missed the meeting due to illness and said he was "appalled" by the decision.

Wagga Wagga City Council mayor Greg Conkey addressed delegates at a conference in Kunming. ( Supplied: Wagga Wagga City Council )

"The three people who supported the motion directly or indirectly benefit from the trade we do with China," he said.

"So they still support that, but they want to cut all social and cultural ties with a sister city, the people of a sister, who are very warm and friendly and open.

"That's hypocritical."

The mayor said the city has tens of millions of dollars in trade with China.

"I'm quite distraught and appalled by the decision last night and I look forward to this rescission motion getting up in two weeks time," Cr Conkey said.

Cr Funnell said he was not trying to influence international politics.

"We are in a sister city relationship with these people so I'm not dabbling in international affairs at all. I'm actually dabbling in local government affairs because this is a local government relationship," he said.

"I don't want to be in a relationship with a communist regime."

The Member for Riverina and Deputy Prime Minister Michael McCormack has been contacted for comment.

The rescission motion will be put to the council at the next meeting on April 27.