The Chinese billionaire and major political donor Huang Xiangmo has hit out at a decision to bar him from Australia, describing his treatment as “grotesquely unfair” and telling political parties to return his money if they believe it was given inappropriately.

Huang has been effectively barred from re-entering Australia after authorities blocked his bid for citizenship and cancelled his residency. Concerns have been raised about his long-running involvement with the Australian Council for the Promotion of the Peaceful Reunification of China, which experts say acts as part of China’s global influence network.

Huang said his treatment by Australian authorities was “profoundly disappointing”.

“The decision of visa cancellation was made based on unfounded speculations that are prejudiced and groundless,” he said in a statement. “This is not the Australia that I believe in, the Australia of freedom, democracy, rule-of-law and fairness, but I keep my faith in law and justice.”

Huang has donated $2.7m to major parties in Australia. He came to notoriety through his dealings with the former Labor senator Sam Dastyari, who Huang gave $5,000 to cover “legal bills”.

Huang on Friday urged political parties to return his money if they thought any donations were inappropriate. He said he had only ever donated money at the request of political parties.

Huang said he had never given money as “proactive offerings” and that making donations as a “means of exercising the right to political participation” was available to “Australian Chinese and all ethnic groups alike”.

“If any of the past donations I made was deemed inappropriate by any political party or political figure, I again propose the option for them to duly return the amount donated without the need to pay any interest,” he said. “The returned money will be then donated to Australian charitable organisations accordingly.”

Guardian Australia revealed on Friday that the NSW Liberals had accepted donations from Charlton Lok, who previously worked as a vice-chairman under Huang at the reunification council.

Academics with expertise in China’s foreign influence operations have told US Congress and the Australian parliament that the reunification council has strong links to the Chinese Communist party. Huang flatly denied this in his statement, saying the council and its regional equivalent “are neither affiliated with, nor funded by, any foreign governments”.

The council promotes China’s policies on Tibet and Taiwan and its vision of One China.

Huang said Australia’s domestic spy agency, Asio, had cited his involvement in the council as a reason for blocking his visa. But Huang said the council’s One China stance was in line with Australia’s own foreign policy.

“One of the things ASIO has accused me of is being the chair of a reunification non-profit group, however the ‘One China’ policy is in line with Australia’s diplomatic position since 1972, that Australia respects China’s sovereignty and territorial integrity.

“If I am penalised for promoting the peaceful reunification of China, such penalty is against Australia’s own diplomatic position and international commitment as well as Australia’s fundamental principles of cultural diversity and freedom of speech,” he said.

“Consequently, it inflicts confusion on all Australians who honour the one-China position and support peaceful cross-strait relations.”