The Federal Government's foreign influence laws have received a lashing from the Chinese community, with some Australians of Chinese heritage saying they felt their loyalty was being doubted.

Key points: The law requires lobbyists working "on behalf of" a foreign power to register publicly

The law requires lobbyists working "on behalf of" a foreign power to register publicly But there is confusion around who needs to sign up to the scheme

But there is confusion around who needs to sign up to the scheme Failure to register is a criminal offence, punishable with up to five years' imprisonment

The main point of contention is the new Foreign Influence Transparency Scheme, which quietly came into effect earlier this month, and is basically a publicly available list of political lobbyists working "on behalf of" a foreign power.

Former Cabinet ministers and Government officials will also need to register if they start working for a foreign organisation.

But leaders within Australia's Chinese communities are frustrated with the law's ambiguous language, as well as the lack of consultation, which has left many unsure about whether they needed to sign up.

The consequences for failing to register have only added to the discord: non-compliance is a criminal offence, with a potential jail term of up to five years.

At a community information session organised last week in Melbourne, that frustration boiled over into outright anger.

"We found the bill condescending, patronising and insulting to the Chinese community," former Victorian Labor politician Hong Lim said.

"Our only crime is to be born Chinese."

So what is the foreign influence transparency law, and why is it dividing opinion?

Who needs to register, and why?

A foreign influence scandal involving Huang Xiangmo, second left, and former Labor frontbencher Sam Dastyari sparked the law change. ( Supplied: Yuhu website, file )

The Foreign Influence Transparency Scheme was part of a raft of foreign interference legislation passed last year, in the wake of political controversies involving the billionaire pro-China lobbyist and political donor Huang Xiangmo.

Mr Huang was able to become a major lobbyist in Australian politics despite concerns from security agencies about his links to the Chinese Communist Party.

The scandal led to a memorable speech from former prime minister Malcolm Turnbull, where — much to the outrage of the Chinese Government — he quoted Chairman Mao Zedong, to signal Australia had "stood up" to foreign interference.

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Watch Duration: 1 minute 3 seconds 1 m 3 s Malcolm Turnbull says modern China was founded with the words 'the Chinese people have stood up'.

Part of that "standing up" was the transparency scheme, essentially a register of foreign influence activities in Australian politics, allowing politicians to know whom the lobbyists they met with were actually working for.

Clinton Fernandes, a professor of international affairs and politics at UNSW Canberra, said the scheme was similar to existing laws on political advertising on television — when you see an election advertisement, you're always told who authorised it.

"The aim is that the Government and the public need to know who it's really dealing with, not the front man," he said.

So what are some of the problems?

Well for starters, the "ambiguous" language used in the law is a problem — and it's not just the Chinese community that's frustrated on that front.

The big issue is how the law defines the concept of acting "on behalf of" a foreign power, which the Attorney-General's Department says could come through formal or informal "arrangements" between Australian and overseas groups.

"That can bring in a whole bunch of people who themselves don't think that what they're doing is foreign influence," Professor Fernandes said.

"[Say] there's a foreign speaker coming in to one of their events from a foreign government, or a foreign political organisation — that would require an arrangement."

Chap Chow, a Victorian Government "multicultural champion", says his community is confused by the register. ( ABC News: Jason Fang )

Chap Chow, a community advocate who has been named a "multicultural champion" by the Victorian Government, also pointed to language as an issue.

"A lot of organisations who might fit the bill are hesitating, let alone those of us for who English is not our mother tongue," he said.

Others raised free speech concerns, saying that if they were vocally supportive of a Chinese Government policy they could come under suspicion.

Peter Yu, the editor of the Melbourne-based Chinese newspaper Pacific Time, said it seemed as if Canberra was "doubting the loyalty and belongingness of the Chinese community".

Asked about the issues raised, Attorney-General Christian Porter told the ABC the new transparency system did not target any one particular country.

"As can be seen by online registrations already the scheme is now covering several countries, with several registrations covering the US," he said in a statement.

However sign-ups appear to have been relatively slow so far, owed in part to the confusion.

What happens if lobbyists don't sign up?

Attorney-General Christian Porter's department could compel people to sign up to the scheme. ( ABC News: Ian Cutmore )

The secretary of the Attorney-General's Department has the power to issue a notice declaring an organisation "foreign-government-related" — this would force anyone lobbying on their behalf to sign onto the register, or face prosecution.

None of these notices have been issued yet, but Alex Joske from the Australian Strategic Policy Institute said the upcoming federal election may change that.

"[The elections] will definitely be a heightened period of activity for the Government in trying to increase the transparency of foreign influence," he said.

However, some groups that have been linked to political influence activities are yet to sign up.

No members of the Australian Council for the Promotion of Peaceful Reunification of China (ACPPRC), which advocates against Taiwanese independence, are currently listed on the register.

Analysts have said that organisation is linked to China's United Front Work Department, the body responsible for Chinese overseas influence operations.

In a statement, the ACPPRC told the ABC it was "not qualified to register" under the transparency scheme, but did not elaborate on why that was the case.

"[ACPPRC] either think that they don't need to register, or they're willing to test it, willing to run the gauntlet in a sense," Mr Joske said.

"I think it is likely that the Government will decide to try to call the ACPPRC to register, especially because its purpose is officially to promote the One China Policy, which is quite different to Australia's policy on China and Taiwan."

Likewise, the 14 Australian universities hosting Beijing-funded Confucius Institutes have so far declined to sign up to the scheme.

Analysts and academics have raised concerns that Confucius Institutes, which operate primarily as culture and language schools, lobby universities and students on political issues and promote Chinese Government policies.