Senior Federal Labor MP Tanya Plibersek has labelled the prime minister a hypocrite over his handling of revelations surrounding embattled Liberal Glady Lui as further revelations emerged.
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The first-term Victorian MP is under fire over donations and links to the Chinese Communist Party.
The ABC obtained a motion that was put forward to Ms Liu's Victorian Liberal Party conference in 2017, when she was president of its Eastern Multicultural Branch, to make foreign investment in agribusiness and agricultural land easier and without approval by the Foreign Investment Review Board.
It also accused public attitudes toward foreign investment as being driven by xenophobia, Australia's national broadcaster said.
Ms Plibersek said Ms Liu should stand up in parliament and explain her position and Prime Minister Scott Morrison should make that happen.
"This a test of his leadership," the former Labor deputy leader told reporters in Sydney on Saturday.
"He wants to go full bore if it's one of ours and he wants to turn a blind eye when it's one of his own. That's just hypocrisy."
But Ms Lui's NSW colleague, Liberal MP Trent Zimmerman believes she has already done enough to clear her name, describing attacks on her as a "witch hunt".
"Gladys Liu's loyalty to Australia has been questioned in the media and in the parliament and that's disgraceful," Mr Zimmerman told ABC television.
"Frankly, it wouldn't be happening if she wasn't Hong Kong born."
Mr Morrison also described such scrutiny from Labor and opposition parties as having "grubby undertones", which has been taken by many as meaning racist.
But Labor said it has nothing to with racism and everything to do with accountability.
The spotlight was put on Ms Liu after a interview she did with Andrew Bolt on Sky News earlier this week where she failed to acknowledge her past allegiances or tow the bi-partisan position over the South China Sea.
Her Liberal supporters have described it as nothing more than a "clumsy" interview, but Labor senator Tim Ayres thought it was a "catastrophe".
Senator Ayres says Ms Liu still has questions to answer in the parliament, as does the prime minister.
"Deal with it, deal with it quickly. But the Liberal Party isn't capable of dealing with this quickly and just wants to play the politics," he told ABC television.
Australian Associated Press