Amidst the COVID-19 pandemic, a surge in anti-Chinese sentiment emerged as a pressing issue, with debates on how the pandemic exacerbated such sentiments. To explore this intricate relationship, we conducted two survey experiments, incorporating COVID-specific contextual inquiries in Australia and the United States during two phases (8–21 June 2021 and 28 July-12 August 2022). Our findings reveal that individuals’ perceptions of the Chinese diaspora remained unaltered when presented with information regarding the Chinese government’s initial management of COVID-19. However, when exposed to a message suggesting the Chinese government’s influence over overseas Chinese communities, people’s attitudes towards the Chinese diaspora significantly deteriorated. In addition, Australian respondents demonstrated heightened sensitivity to perceived foreign interference from China compared to their American counterparts. Our study underscores the role of suspicions and apprehensions surrounding China-related foreign interference in shaping anti-Chinese sentiment in the Western context.