Australian businessman Matthew Ng has been released from Silverwater prison, 18 months after he was transferred from China to Australia in the first prisoner transfer deal of its kind.

Key points: Government has granted Ng early release based on exceptional family circumstances

Government has granted Ng early release based on exceptional family circumstances Ng had been sentenced to 11.5 years jail in China on charges of fraud and bribery

Ng had been sentenced to 11.5 years jail in China on charges of fraud and bribery Ng transferred to Australia in 2014 under first deal of its kind with China

Ng, who has always maintained his innocence, was sentenced to 11-and-a-half years jail by a Chinese court on charges of fraud and bribery after a commercial dispute with a Communist-owned enterprise.

He was granted release today by Justice Minister Michael Keenan because of exceptional family circumstances.

His 14-year-old daughter died while he was in prison in China and his wife is now seriously ill, leaving the father-of-three desperate to be able to care for his family, who are now living in New South Wales.

Upon his release from jail, Ng warned Australians not to do business in China as it was too dangerous.

"Don't do it. Don't do it. Because not only will you lose your money, you'll lose your life and your family. And that is what happened to me," he said.

"What they've done to me they can do to anybody."

Ng said he spoke to his father in New Zealand earlier today but his wife Nikki is in hospital so he has been unable to speak to her.

"He was very, very happy. He actually reminded me to be very careful because I came out and he said things might happen to you. He is very old fashioned Chinese," he said.

"Nikki, I believe she is undergoing some operation right now so I haven't spoken to her yet."

"Right now I just want to make sure my family can stay together. And other than that I need some time to get back to normal. I've been out of society for almost six years and things have changed."

Ng also thanked Mr Keenan for granting his early release. In a statement today the Minister said he was "satisfied exceptional circumstances exist" to justify Ng's early release.

"Mr Ng will be required to comply with all licence conditions attached to his release until the expiration of his original sentence," the statement said.

Speaking from New Zealand, Ng's sister Li-Jaing Ng told the ABC her brother had paid a high price for doing business in China.

"That is very, very sad. That is very sad for Matthew, for his loss of freedom, loss of child, loss of business. And not just the business, loss of his goal. He want to make successful [business] but he didn't," she said.

Ng's wife Nikki Chow recently spoke exclusively to Lateline about the family's ordeal.

Matthew Ng's daughter Isabella died while he was in custody in China. ( Supplied )

"It's really harsh. There's a moment I broke down and cried but crying doesn't help. I put everything into protecting my children and not let anything hurt them," she said.

Ng's lawyer Tom Lennox described Ng as Australia's first Chinese political prisoner, and thanked the Government for granting an early release.

"If you look at the test of what a political prisoner is generally considered to be, that is, by action of the state in relations to issues that would not be considered to be crimes in any other jurisdiction, Matthew satisfies that test," he said.

"He was convicted on circumstances that would not constitute a crime anywhere in the western world."

Last year the Department of Foreign Affairs and Trade had warned that an early release could jeopardise any future prisoner swap deals with China.

Attorney-General George Brandis said the early release was consistent with the principles set out under an international prisoner transfer agreement between Australia and China.

He said he was satisfied the Chinese Government would understand there were exceptional circumstances in Ng's case.

"The Chinese entered into this agreement in 1997. It sets out the circumstances in which the release of a prisoner who is the subject of a transfer may occur in exceptional circumstances," he said.

"The Chinese having agreed to those circumstances, I'm sure have no objection to them being applied in this particular case."

Ng dreamt of starting a business in his homeland

In the late 1990s, after graduating with a masters of business administration from the University of New South Wales, Ng had headed back to China with his wife and their growing family, with the dream of starting a travel business in China's booming economy.

The company he established, ET China, was about to expand after the successful acquisition of a state-owned company.

During preparation for its listing on the London stock exchange, Ng found himself in a bitter dispute with the state-owned company he had purchased.

Ms Chow said her husband was determined to stay in control.

"If you want to do business in China you have to play by their rules. You can't bring your Western concepts to China. You have to play by their rules."

Ng was arrested outside their home in Guangzhou soon after.

"It was almost dinner time and he was coming back. He called me and said: 'Can you come down to the car park?'." Ms Chow said.

"OK, which I did. I saw eight policemen surrounding him.

Matthew Ng and his wife Nikki Chow who is now seriously ill. ( www.austchinaalumni.org )

"He just passed me his briefcase and asked me to call the consul general. Then off he goes in the van and he never came back."

Ng was tried in a closed court in southern China and sentenced to 11.5 years in prison for fraud and bribery. All his property was expropriated.

Mr Lennox said Ng had done nothing wrong in his business dealings.

"It was all perfectly above board, scrutinised by big accounting firms, there were lawyers scrutinising the deals," he said.

"This was no back room deal, this was Matthew building a business, on the cusp of great success and obvious increase in value and it was taken from him.

"The allegations of fraud and bribery, anywhere in the Western world that's not fraudulent, that's growing your business, that's not bribery, and that's what Matthew was found guilty of."

Ng's transfer to Australia was the first of its kind deal with China worked out under the Rudd-Gillard governments.