Coal Byron, a billionaire and the head of the Palmer United Party, also called the Chinese as "bastards" who "want to take over the country".
The senior Australian politicians said that Palmer's comments were "hugely damaging" considering that China is Australia's largest training partner.
Palmer said he only had come to fully understand "that what I said was an insult to Chinese people everywhere and I wish to assure them that they have my most genuine and sincere apology that I am sorry that I said the things that I said."