Story highlights The Chinese government reacted furiously to allegations of influence in Australia

Dastyari has previously been accused of working closely with Chinese donors

(CNN) An Australian senator with close ties to a prominent Chinese businessman and political donor has stepped down amid growing concerns about China's influence over Australian politics.

Opposition Labor party Senator Sam Dastyari announced his resignation early Tuesday morning after weeks of pressure, saying he wanted to spare his party further distraction.

"I have always honored my parliamentary oath, I've always acted with integrity and I remain a loyal patriotic Australian," Dastyari told reporters as he announced his resignation.

The Dastyari controversy prompted the introduction of new security laws last week, including a complete ban on foreigners donating to Australian political parties.

"Foreign powers are making unprecedented and increasingly sophisticated attempts to influence the political process, both here and abroad," Prime Minister Malcolm Turnbull said.