"I think Australians need to be for Australians, Americans need to be for Americans", she told broadcaster ABC while on a speaking tour of the country.
Under both Democrat and Republican governments, the U.S. herself has been found guilty in many countries of interfering covertly to gain political power and to influence policy - and, I add, waging war.
The former First Lady's comments have angered Chinese authorities who have attacked the stories as paranoia.
In December, Australia's Prime Minister proposed banning foreign political donations, citing "disturbing reports about Chinese influence".
"And it's not just happening in the United States".
She said: "Whether it's Russian Federation in a secret way interfering with our election and producing more than 3,500 ads to try and confuse our electorate to try to damage me, to the Chinese looking to influence policy, we should say no".
The country has been hit with several allegations of Chinese meddling in recent months.
Clinton compared the Chinese government's efforts to influence and interfere with Australian politics to Russia's meddling in the 2016 U.S. election, where she lost the presidency to Donald Trump.
She said: "There is certainly a lot of smoke".
"And we should be careful not to confer too much prestige or legitimacy on Kim Jong-un without seeing concrete concessions, let alone making concessions of our own".
"I believe our world is at a crossroads and what we do next week not only as governments but as business leaders, media, influencers and ordinary citizens matters enormously", Mrs Clinton said on Friday.
The former prime minister of Australia this week compared the frequent "lock her up" chants against Hillary ClintonHillary Diane Rodham ClintonAlex Jones compares Maxine Waters to a "mad dog" Senate panel invites Comey, former officials to briefing in Russian Federation probe Senate investigators request interview with Nunberg, communications with Stone MORE that pop up at Trump rallies to the Salem witch trials.
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