BHP plays down Palmer China comments (AAP)

Govt warns Palmer over China remarks

Controversial MP Clive Palmer's stinging verbal attack on China has been labelled "absurd" and irresponsible" by the Chinese embassy as he faces increasing condemnation.

A writer for the Global Times hit out at "Palmer's rampant rascality" that "serves as a symbol that Australian society has an unfriendly attitude toward China."

"China cannot let him off, or show petty kindness just because the Australian government has condemned him," the opinion piece reads.

"China must teach Canberra a lesson for sabotaging a bilateral relationship. This situation is making it a radical "double-dealer" among all the nations which have relationships with China.

"Canberra boasts about itself having so-called strategic values, most of which, however, are created out of its own delusions."

Mr Palmer is embroiled in a legal battle with Chinese state-owned company CITIC Pacific, which has accused him of siphoning off $12 million in funds. Photo: AAP.

Palmer continues to refuse to apologise to the Chinese, telling the Financial Review, that "if I went [to China] they'd shoot me."

He is embroiled in a legal battle with Chinese state-owned company CITIC Pacific, which has accused him of siphoning off $12 million in funds.

He denies the allegations.

The Chinese embassy in Canberra on Tuesday rebuked the federal MP for a tirade on national television in which he called the Chinese government "mongrels" and "bastards".

Foreign Minister Julie Bishop has issued a warning to MP Clive Palmer, saying he shouldn't use his public position to insult China over a legal battle. Photo: AAP.

Government warns Palmer over China remarks

The government has warned MP Clive Palmer against using his position in parliament to insult China amid a high profile legal battle with a Chinese company.

Foreign Minister Julie Bishop issued the warning, saying Mr Palmer was trying to demean an entire nation and insult one of Australia's major strategic and economic partners.

Ms Bishop added her voice to the increasing condemnation of the remarks, contacting the Chinese embassy to assure Beijing they did not reflect the attitudes of Australians.

She said voters in Mr Palmer's Queensland electorate should reflect on his comments.

"It would appear that he's using his public position, as a member of parliament and his appearance on a national television program to insult the Chinese people," she told News Corp Australia.

The foreign minister's warning comes as new evidence was filed in the Supreme Court in Brisbane, reportedly detailing how much of CITIC's money was spent by Mr Palmer on his political party.

The Abbott government, which hopes to finalise a free trade agreement with China this year, issued a statement to make it "perfectly clear" it valued its relationship with the Asian powerhouse.

"Peripheral issues will not distract the government in its work to broaden and deepen this most important relationship," Trade Minister Andrew Robb said on Tuesday.

Morning news break – August 20

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