Emails sent to the dance group Shen Yun, which is banned in China, and seen by AAP warned that bombs at The Lodge would be set off if the troupe's upcoming performances went ahead.
Anthony Albanese was subsequently evacuated from the heavily fortified property for three hours on Tuesday while searches were carried out.
"We have noticed relevant reports but have no knowledge with what happened," a Chinese embassy spokesperson said in a statement.
"China always opposes all forms of violent attacks."
The email, in Mandarin, said large amounts of nitroglycerine-laden explosives had been placed around the prime ministerial residence.
"If you insist on proceeding with the performance, then the prime minister's lodge will be blown into ruins and blood will flow like a river," read the email, translated and provided to AAP by the Falun Dafa Association of Australia.
"Of course, if you don't care about the personal safety of the prime minister and other high officials of Australia you can go ahead with the Shen Yun performance."
Shen Yun is a dance group linked to the Falun Gong (Falun Dafa) spiritual movement and is scheduled to perform in multiple Australian cities in coming weeks.
The group passed the threatening email to federal police shortly after receiving it.
The embassy spokesperson was critical of Shen Yun and Falun Gong, labelling the show as a "political tool" used by the spiritual group to "disseminate anti-China narratives and cult ideology".
"This constitutes a distortion and desecration of Chinese culture, and represents deception, manipulation, and harm to audiences," the spokesperson said.
The email was the latest in a series of rising threats against MPs, with the AFP confirming 950 incidents were investigated in 2024/25.
That number was 63 per cent higher than the previous four financial years combined.
A spokeswoman for the Falun Dafa Association said while Shen Yun regularly received threats, the emails were an escalation.
"Recent reports of a death threat directed at Australia's prime minister highlight the dangerous trajectory of (Chinese Communist Party)-linked intimidation tactics," the spokeswoman said.
"When threats extend to a nation's elected leader, this is no longer solely a matter of religious freedom or artistic expression - it becomes a direct challenge to national sovereignty, democratic governance, and public safety."
Mr Albanese thanked police following the bomb scare and urged people to dial down political rhetoric.
"It's just a reminder to take every opportunity to tell people, turn the heat down for goodness sake. We can't take these things for granted. Just turn it down," he said.
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