A "damaging" decision by a New South Wales council to cut ties with China over the coronavirus pandemic looks set to be overturned after widespread community backlash and criticism from the Chinese consul-general in Sydney.

Key points: A Chinese Consulate-General spokesman says the decision was damaging and wants it reversed as soon as possible

A Chinese Consulate-General spokesman says the decision was damaging and wants it reversed as soon as possible Deputy PM Michael McCormack says China is Australia's largest trading partner and Wagga Wagga "does well" out of the relationship

Deputy PM Michael McCormack says China is Australia's largest trading partner and Wagga Wagga "does well" out of the relationship Councillor Tim Koschel, who cast the deciding vote, says he regrets the decision

Wagga Wagga community leaders said they were "appalled" by a city council vote this week to sever its sister city agreement with Kunming. Deputy Prime Minister and Member for Riverina Michael McCormack called for the decision to be reversed.

The council today called an extraordinary meeting for next Wednesday to rescind the vote.

Councillor Paul Funnell has denied racism motivated his motion to end the sister-city relationship because the Chinese Government "delights in lies, subterfuge and coverups" and "brought death and destruction across the world with COVID-19".

A spokesman from the Chinese consulate-general in Sydney said it regretted the decision that "not only harmed the atmosphere and foundation of exchanges and cooperation between the two sides but also damaged the interests of the City of Wagga Wagga".

He said some councillors had "falsely claimed that China had 'concealed and delayed' the epidemic situation".

The spokesman said the consul-general hoped the council would reverse the decision to "avoid further negative impacts on the overall cooperation between the two sides".

Community backlash

Community leaders criticised the decision fearing it would tarnish the city's reputation.

Belinda Crain, chief executive of Wagga Wagga Multicultural Council, said Wagga Wagga was an inclusive community.

"We're a refugee welcome zone, we have street festivals every year to celebrate cultural diversity, and we recognise the contributions that people from all different backgrounds make in our community," she said.

"I was appalled by the decision to cut ties with China but I'm confident the views expressed are of a minority and don't reflect what people in Wagga believe more broadly."

Concern about trade relations

Mr McCormack said the decision should be reversed.

"We need to remember that China is our largest trading partner as a nation and the Riverina, and Wagga Wagga specifically, does well in our two-way relationship with China, particularly our farmers in the way of agricultural exports," he said.

"The sister city relationship between Wagga Wagga and Kunming extends back more than three decades and it has been mutually beneficial.

"I appreciate councillors are passionate on both sides of this issue and I respect their views, but I think the sister city relationship should be allowed to continue."

Wagga Wagga Business Chamber president Danielle Wait said many local businesses benefitted from both importing and exporting relationships with China.

"We all work very hard to promote Wagga as a place to do business and we would hope with the rescission motion we'll be able to continue to promote that positive message," she said.

Independent Member for Wagga Wagga Joe McGirr said while he thought there were valid concerns about China's Communist Party, cutting ties with Kunming was not the way to raise them.

"I think it sends a very poor message in relation to our multicultural community, particularly our Chinese community," Dr McGirr said.

"We're an inclusive society here and I don't want this sort of discussion to be some sort of covert signal around racism."

Wagga Wagga City Council Mayor Greg Conkey addressing a conference in Kunming, says he was distraught at the decision. ( Supplied: Wagga Wagga City Council )

The news triggered discussions within the Chinese-Australian community on popular online forum Our Steps.

Many users expressed confusion and disappointment over the decision.

One user said the move left them speechless, commenting that the friendship between Kunming and Wagga Wagga was "only skin-deep".

Another user, who seemed to be worried about the decision, said: "The whole world is attacking China. How can we deal with it?"

Councillor apologises for supporting motion

The councillor who had the casting vote at Tuesday night's Council meeting, Tim Koschel, has backflipped on his decision and took to Facebook to apologise.

"Deep down in my gut I knew I had made the wrong decision," he said.

"I let the emotion of the current environment get in the way of my decision and didn't look at the larger picture.

"For this I apologise to our sister city of Kunming in China, my fellow councillors, as well as my local community for my actions."

Mayor Greg Conkey could not attend this week's council meeting because he was sick and said he was "distraught" when he found out about the decision.

"You've got to bear in mind it was only three councillors who voted for that decision. There are nine councillors on Wagga City Council and it was only unusual circumstance that allowed this motion to get up," he said.

Cr Conkey said he was confident the rescission motion to be put forward at Wednesday's council meeting would overturn the motion to axe ties with China.