Contrite and apologetic, Labor senator Sam Dastyari has responded to the furore over links to Chinese donors by saying he was wrong if he "misspoke" about a territorial dispute in the South China Sea.

Key points: Dastyari receives Bill Shorten backing amid controversy over Chinese donor

Dastyari receives Bill Shorten backing amid controversy over Chinese donor Senator now says he 'misspoke' over views on South China Sea territory dispute

Senator now says he 'misspoke' over views on South China Sea territory dispute Dastyari says donors did not receive anything in exchange for funds

The Labor frontbencher has fronted the media for the first time since a series of stories began emerging last week about donations and payments he had received from organisations with links to Beijing.

The senator has so far survived the Government blowtorch, with Opposition Leader Bill Shorten continuing to back him to remain on his frontbench despite calls for his scalp.

The Prime Minister, launching a blistering critique from his trip to the G20, maintains a series of donations were effectively "cash for comment".

Malcolm Turnbull has pointed to a Chinese language news report that quoted Senator Dastyari making pro-China comment on the disputed territories in the South China Sea.

The article published during the election campaign quoted Senator Dastyari as saying: "The South China Sea is China's own affair, Australia should remain neutral and respect China on this matter."

On Monday Senator Dastyari provided a statement saying he could not be held responsible for what was published in the Chinese media, but on Tuesday he took a different tone and did not deny the quote was accurate.

"If I have misspoken on this issue in the past, in this instance, then I would have been wrong," he said.

"I support the Labor Party position on the issue of the South China Sea."

In July, Labor's defence spokesman Stephen Conroy accused China of "bullying" its neighbours, and called on the Federal Government to authorise the navy and air force to conduct freedom of navigation exercises in the region.

'I made a mistake and I'm sorry': Dastyari

Senator Dastyari used the media event to repeatedly apologise to for asking a company with links to the Chinese Government to pay a $1,670.82 bill.

"I do accept that I should have made that payment myself … I made a mistake and I am sorry."

Despite acknowledging the wrongdoing he said he had neither offered, or been asked, to hand in his resignation.

In a tense back and forth with media, Senator Dastyari rejected any insinuation "any of my statements or decisions have been made for any reason other than the national interest".

He said no donors had asked for anything in exchange for the funds.

"No one has ever asked for anything in return nor would I have done anything in return," he said.

But despite repeated questioning, Senator Dastyari has not explained why he decided to ask Top Education to cover his bill.

Manager of Opposition Business Tony Burke was pressed on the issue after the press conference, telling the ABC that "it's pretty clear that reason he asked someone else to pay it was he was inappropriately paying the bill himself".

On Tuesday Mr Shorten justified his decision to keep Senator Dastyari on the frontbench, saying he had "severely counselled" the frontbencher.

Sorry, this video has expired Bill Shorten is prepared to give Dastyari a second chance

"I've spoken to him severely and I've made it crystal clear that this is not the behaviour I expect in the future from him," Mr Shorten said.

"I am prepared however to give him a second chance because I think he can make a contribution to this country."

Mr Shorten also referred to Senator Dastyari — a frontbencher and manager of Opposition Business in the Senate — as a junior senator.

Mr Turnbull said that there seemed to be "no consequences" for Senator Dastyari's actions.

He has continued to put pressure on Mr Shorten to dump Senator Dastyari from the frontbench.

"What Mr Shorten is seeking to do is to distract attention from the very real issue, the very real failure of his leadership in not removing Sam Dastyari from the frontbench," Mr Turnbull said.

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Watch Duration: 8 minutes 19 seconds 8 m Interview: Barnaby Joyce

"Mr Dastyari did not receive a donation for the Labor party — he took cash for himself."

Acting Prime Minister Barnaby Joyce would not be drawn on whether foreign donations should be banned.

Mr Joyce told the ABC he and Mr Turnbull would welcome debate around potential reform.

"I'm happy to have the discussion, but I won't unilaterally answer that on behalf of all my Cabinet colleagues here tonight," he said.