Defecting Chinese spy Wang Liqiang is living in hiding in Sydney.

Defecting Chinese spy Wang Liqiang is living in hiding in Sydney.Credit:Steven Siewert

Mr Wang is the first Chinese operative to blow his cover. He has revealed the identities of senior Chinese military intelligence officers in Hong Kong,as well as providing details of how they fund and conduct political interference operations in Hong Kong,Taiwan and Australia.

Mr Wangsaid his decision to defect was driven by conscience as he came to see the human cost of the subversive war he had been enlisted in. “I was involved in organisations that aim to sabotage world democracy,” he said.

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Mr Hastie’s support of Mr Wang,27,is also backed by former senior Australian foreign affairs official and intelligence specialist Phillip Gregory,who described Mr Wang as a “young man,full of incredible torment,a brave man”.

An investigation byThe Age,The Sydney Morning Herald and60 Minutes can also reveal an Australian link to the Hong Kong spy operation that Mr Wang was involved in. The man he has accused of being his spy master and of ordering him to conduct intelligence operations in Hong Kong and Taiwan,allegedly had direct dealings withAustralia’s most infamous accused Chinese government agent and political donor,Huang Xiangmo.

Mr Huang had several business meetings with a Hong Kong-based businessman,Xiang Xin,according to Mr Wang,with the purpose of obtaining finance and establishing networks that would have helped Mr Huang expand his business empire from Australia across the region.

“Huang Xiangmo encountered problems and needed Xiang Xin’s help to do business in other countries,” Mr Wang said.

He said Mr Xiang's business in Hong Kong was a front for Chinese military intelligence and ran significant spying operations in Hong Kong and Taiwan. Mr Xiang did not answer questions posed,however a representative for his company on Friday described Mr Wang's claims as"ridiculous and untrue".

Mr Huang was expelled from Australia in November after ASIO assessed he posed a risk to national security and might be involved in foreign interference on behalf of Beijing. Mr Wang said his former boss had meetings with Mr Huang as recently as this month,but claimed Mr Huang was a spent force since his deportation.

“As for his importance in Australia,China has given up on him,” Mr Wang said.

Liberal MP Andrew Hastie backs an asylum bid by former Chinese spy Wang Liqiang.

Liberal MP Andrew Hastie backs an asylum bid by former Chinese spy Wang Liqiang.Credit:Alex Ellinghausen

However,existing interference networks in Australia remained highly active,Mr Wang said. He had met with a high-ranking intelligence operative he believed was conducting spy operations in Australia via a front company in the energy sector.

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“He told me at the time he’s based in Canberra,” Mr Wang said of the Chinese intelligence official. “I know his position is very important.”

“Huang Xiangmo is definitely a small potato compared with[the Australian operative]. No doubt,in my view. At least we must not measure them based with monetary value. But in terms of importance,[the Australian agent] is far more important than Huang.”

However,Mr Wang also said his Hong Kong intelligence organisation had had dealings with Australian associates of Mr Huang,including former Labor staffer and political donor Xin “Filip” Shu.

In October,Xin Shu allegedly sought a business partnership between his Australian business,BFJ Trading,and the Hong Kong business Mr Wang has identified as a spy front. Bank records reveal BFJ had,at the time of the investment approach in Hong Kong,already received $600,000 from Mr Huang. Mr Xin said he had emailed Mr Xiang,but denied seeking his financial backing.

Mr Xin has previously used companies in his BFJ group to donate large sums to Labor.

There is no suggestion that,by reason of his approach to the Hong Kong front company,Mr Xin knew of or is involved in any interference operations.

But the revelations raise questions about how overseas businessmen accused of being Chinese government agents — such as Mr Xiang and Mr Huang — can use their extensive wealth and business connections to form networks in business and political circles in Australia.

On Friday,former ASIO boss Duncan Lewis said the Chinese government was seeking to"take over"Australia's political system through its"insidious"foreign interference operations.

More on Chinese operations in Australia in60 Minutes andThe Age and theHerald on Monday.

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