Melbourne man "Sunny" Duong liked to boast about his connections and is a "big-noter", but never acted on behalf of the Chinese Communist Party to influence Australian politicians, his lawyer says.

Di Sanh Duong has pleaded not guilty to a single charge of preparing to commit a foreign interference offence, over a $37,450 donation he made in 2020.

Prosecutors allege Mr Duong had links to a Chinese Communist Party agency and was in contact with Chinese intelligence operatives when he gifted the money to the Royal Melbourne Hospital in the early months of the COVID-19 pandemic.

The Crown alleges the donation was a bid to build a relationship with former federal minister Alan Tudge, someone Mr Duong viewed as a potential prime minister.

 

Former federal minister Alan Tudge and Mr Duong at the Royal Melbourne Hospital after Mr Duong's donation.(ABC News)

On Friday, Mr Duong's barrister Peter Chadwick KC told the County Court of Victoria the money was donated as a genuine attempt to help frontline healthcare workers in the early stages of the pandemic.

He said the gift came at a time when there was a rise in anti-Chinese sentiment, fuelled by former US president Donald Trump.

"People in our community unfairly shunned those who were of Chinese background," Mr Chadwick told the jury.

Mr Chadwick said his client came to Australia as a refugee in 1980, joined the Liberal Party and was heavily involved in local community organisations.

"He likes to talk about the powerful and prominent people he meets … he's a big-noter," Mr Chadwick said.

Mr Duong regularly travelled to Asia for business and through his involvement in community groups, Mr Chadwick said.

The travel brought him into contact with Chinese nationals, who are being referred to in the trial as "IO 1" and "IO 2".

Prosecutors claim Mr Duong knew the pair were intelligence agents — something he denies.

"We deny that Mr Duong was at any time recruited by the [Ministry of State Security] or directed by them to do anything," Mr Chadwick said.

Mr Tudge is set to give evidence later in the trial.

 

The case is being heard in the County Court.(ABC News: Patrick Rocca)

For Mr Duong to be found guilty, jury members need to be satisfied beyond reasonable doubt that he was planning to influence the ex-minister.

In evidence, former Victorian MP Robert Clark said he met Mr Duong at local community events and that the pair would sometimes chat about political issues.

Mr Clark said he received an email from Mr Duong in 2019 with ideas about how the Australia-China relationship could be improved.

The proposals included allowing Chinese farming operations on Australian soil and for the Chinese to build a "fast train" that would be paid for by the Australian government opening up access to untapped mining resources.

Mr Clark said he politely replied to Mr Duong but considered the proposals "naive and superficial ideas" which he disregarded.

The trial continues.