Foreign Minister Julie Bishop says Clive Palmer should ''reflect'' on his actions in the wake of his comments about the Chinese being ''mongrels'' who ''shoot their own people'', warning that even though China is Australia's biggest trading partner, we ''still have to compete with other countries''.

On Wednesday, the Palmer United Party leader appeared to back away from his comments on the ABC's Q&A program earlier this week, issuing a statement saying that they were not directed at the Chinese community or government.

This is despite arguing in a radio interview on Wednesday morning that he was talking about ''the Chinese communist government who are suppressing the people'', and comes on top of a tweet on Tuesday, saying he had not ''intended to refer to Chinese people''.

In his statement, Mr Palmer insisted that he had been an ''admirer of China and its people for many years''. ''The Palmer United Party is very fortunate to have in its ranks Australia's first mainland-born Chinese senator, Dio Wang,'' he said.

Ms Bishop condemned Mr Palmer's initial comments on Tuesday, calling them ''offensive'' and ''unnecessary''. Her senior adviser then contacted the Chinese embassy to pass on her remarks.

''I think they appreciated the fact that we had quickly distanced the Australian government and the Australian Parliament and the Australian people from the insults,'' Ms Bishop told Fairfax Media on Wednesday. ''I would imagine the embassy and the ambassador will put it in that context when they report back to Beijing.''

Ms Bishop explained she had contacted the embassy to protect Australia's relationship with its biggest trading partner.

Despite the drama the PUP leader created, the Foreign Minister said she would not be talking to Mr Palmer about his comments.

''He is an elected member of Parliament. He is responsible to his electorate and more broadly he is responsible to the Australian people,'' she said.

''He's an elected representative and he should reflect on his actions.''

Condemnation of Mr Palmer's comments continued on Wednesday, with Prime Minister Tony Abbott describing them as ''over the top, shrill and wrong''.

Despite hosing down his earlier comments, Mr Palmer continued his attack on the Chinese company CITIC, in which he is involved in a dispute over royalties and the use of funds. ''What is unacceptable is a Chinese state-owned enterprise that abuses the legal system for commercial gain in a global strategic effort to control resources,'' he said in his statement.

With Aleisha Orr

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