While the Federal Government's proposed overhaul of intelligence and espionage laws is high on the political agenda this year, Chinese-Australian communities remain divided over the issue.

Key points: The Chinese Community Council is worried about becoming marginalised

The Chinese Community Council is worried about becoming marginalised A pro-democracy group says the law changes are sorely needed

A pro-democracy group says the law changes are sorely needed A China expert says the debate must avoid vilifying Chinese Australians

Prime Minister Malcolm Turnbull and his wife Lucy, wearing a red tie and dress respectively, recently visited Melbourne's Chinatown for the Lunar New Year celebrations.

The next day Mr Turnbull appeared in Box Hill — a suburb with a large Chinese population — to distribute New Year red packets to the public.

The visit was praised by some in the local Chinese language media as a "friendly" gesture amid the tensions between Australia and China.

But was it enough to ease concerns among Australia's Chinese communities over the proposed overhaul of the country's intelligence and espionage laws?

China 'the obvious elephant in the room'

The Parliamentary Joint Committee on Intelligence and Security (PJCIS) has been collecting public opinions on the review of the espionage and foreign interference laws.

While a variety of legal and media organisations made submissions to the committee, only a few Chinese community groups have made formal submissions.

The Chinese Community Council of Australia (CCCA), which describes itself as an independent non-profit organisation representing Chinese-Australians, said China was the "obvious elephant in the room" for the legislation.

In its submission, the CCCA said the Chinese-Australian community was worried about being marginalised and scapegoated amid China's political and economic rise.

"As we cross the bridge into a new geo-political landscape, we are experiencing a swamp of 'popular nationalism' and eerie echoes of 'community scapegoating,'" it said.

The organisation said "popular national media, a number of elected representatives in Parliament and mainstream community leaders" were behind this.

It also said registering as a "foreign agent" and revealing "foreign principal" relationships would be hard, as some Chinese-Australians had complex ties to China in "academia, business … arts and entertainment and politics."

"The concern is about potential suppression on 'free and open discourse and political expression' which we have learnt to appreciate as a right for all Australians," it said.

"We point out that our Chinese community sector is law-biding [sic] and share with mainstream Australia all its way of life and its values."

'Better late than never'

However the community does not speak with one voice, and the pro-democracy Federation for a Democratic China (FDC) welcomed the legislation in its submission.

"Australia is a free and open democracy, but unfortunately the freedom and democracy of Australia has been abused and misused," it said.

Qin Jin, the chairman of the FDC, told the ABC the Chinese Government's financial progress over the past two decades was allowing it to infiltrate and influence foreign countries.

"This is a huge invisible hand, but the Western governments, the Western society, the media and the business community basically have no idea of ​​this," he said.

Mr Qin said the proposed overhaul had been sorely needed for a while, but it's "better late than never".

"By introducing [the bill], the damages of infiltration and interference to Australia on the part of the PRC [People's Republic of China] should be remedied and rectified."

Laws must strike 'proper balance'

Linda Jakobson, the former East Asia Program director at the Lowy Institute and chief executive of the not-for-profit public policy initiative China Matters, also submitted her opinion.

Professor Jakobson told the ABC she had done research looking into the influence the Chinese Government has on Australian universities.

Professor Jakobson said "every effort must be made" to ensure communities are not vilified. ( Supplied )

"There are certainly cases where students have told researchers and interviewers that they have been asked by [Chinese] consulate officials to either try to influence the conversation in class, to not discuss certain issues like Falun Gong, Tibetan independence for example," she said.

In some cases, students said consulate officials had asked them to insert the view of the Chinese Government into discussions, Professor Jakobson said.

While universities are places of academic freedom where any point of view should be freely expressed, Professor Jakobson said it was different if a government official "encourages or directly asks" students to express a certain point of view.

She said a revision of Australia's intelligence and espionage law was necessary, however "every effort must be made" to ensure the debate does not vilify communities.

"It is vital to strike the proper balance between ensuring that the PRC Government does not interfere unlawfully in Australian affairs and at the same time respecting the diverse views of numerous Chinese-Australian communities," she said in her submission.

"Australians of Chinese heritage should not have to fear being looked upon by their colleagues, neighbours or society at large as 'stooges' of the Communist Party of China … if they also feel proud of China's rich cultural heritage."