Australian universities have been hyperactive in tying up collaborations and research cooperation deals with universities and other organisations in China, including Chinese state-backed companies. But in the wake of a major political scandal in Australia involving Chinese donors who have also funded local institutions, universities have been advised to be alert about undue influence by donor organisations on research, including pressure to produce research for Chinese propaganda purposes.

The Independent Broad-based Anti-corruption Commission is investigating past and present senior education department bureaucrats involved with the Ultranet computer project that was scrapped in 2013.Public hearings as part of IBAC's investigation began on Monday hearing allegations that senior department officials bought shares in the company awarded the project tender. The hearings were also told a senior official diverted funds from other projects to cover up a $60 million Ultranet cost blowout.