Western Australia's Palmer United Party senator-elect Dio Wang says he does not know whether his campaign was funded by money allegedly siphoned from an account containing funds belonging to a Chinese mining company.

Clive Palmer's Mineralogy company is currently involved in a bitter legal stoush with the Chinese state-owned Citic Pacific Corporation over royalty payments for the Sino Iron project in WA's Pilbara and control of the nearby port at Cape Preston.

Among claims made by Citic in the case is that Mineralogy has provided no documentation to explain two withdrawals totalling $12 million from an account set up to run the port.

"I'm not involved in Mineralogy's operations, so I don't know whether the allegations are true or not," Mr Wang told the ABC's 7.30 program.

Mr Palmer's opponents have seized on the allegations.

Queensland Deputy Premier Jeff Seeney recently used parliamentary privilege to link the withdrawals to the election campaign.

"The best party that Chinese money can buy; the best party that fraudulently obtained money can buy," Mr Seeney told Parliament.

But Mr Wang said he finds the allegations very hard to believe.

"Given Clive Palmer's vast asset holding, I think there's no reason for Clive to take other people's money," Mr Wang said.

In documents tendered to the court, Citic also alleges the money was used to pay for work on another project run by Australasian Resources, a company 70 per cent owned by Mr Palmer and managed by Mr Wang.

Mr Wang denies the allegations but admits he is not always across that sort of detail and thinks it could have just been an administrative error.

"Sometimes, when the engineering companies do the work, they forget to change the invoice," he said.

"It could be that they made a mistake quoting my company on that invoice."

Palmer's actions threatening relations with China: Barnett

Earlier this week WA Premier Colin Barnett told ABC Radio that Mr Palmer's actions are threatening relations with China.

"I don't like the way he conducts himself," Mr Barnett said.

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Watch Duration: 6 minutes 28 seconds 6 m Clive Palmer faces accusations over federal election funding

"I've spent hours and hours negotiating issues with Clive in good faith and then found that he will try and exploit any small discrepancy, and he's doing that with the relationship with Chinese investors in our iron ore industry. It's not doing this state any good at all.

"He has used his position - perhaps not improperly, but unfairly - to make it extremely difficult for the Chinese group that bought those rights to make the project work successfully.

"He's trying to scrounge every last dollar out of it and I think there is a point where you stick to the goodwill of the agreement.

"To put it bluntly - the Chinese hate Clive Palmer."

Barnett's comments on Palmer not correct: Wang

Mr Wang says that is untrue.

"Being born and growing up in China, I think it may carry more credit if I say all my mates in China, they love Colin Barnett. But obviously that [Barnett's claim] is not correct."

Philip Kirchlechner, a resource analyst with 20 years experience, agrees with Mr Barnett.

He says he is concerned that Mr Palmer's legal stoush with Citic Pacific could have serious consequences for miners relying on foreign finance.

"What is certain is that the Chinese will, from now on, be more selective," he said.

"Citic is, you know, the flagship state-owned enterprise of China - founded by Deng Xiaoping - so it's a really important organisation.

"For them to have a big problem in Australia is certainly not a good sign for other investors."

Mr Wang says whatever the outcome of the dispute, he will stick by Mr Palmer.

"If it is true then it could be a serious situation, but I don't think it's true."