China is denying obvious truths, which may work with a population "starved of real news and only fed propaganda" but it won't work with the rest of the world, according to Graham Richardson.
"At some point China's got to be called out," Mr Richardson told Sky News.
It comes as Prime Minister Scott Morrison has called for Twitter to delete a highly offensive and falsified photo posted on the platform by a Chinese foreign ministry official depicting an Australian soldier holding a knife to an Afghani child.
"On this occasion they've gone way over the top," Richardson said.
"They try to deny obvious truths. Now that may work when you've got a population that's captive to your military.
"It may work when you've got a population starved of real news and only fed propaganda, but it won't work with the rest of the world.
"The whole world is looking at China now, and they're not looking at them favourably."
