Prime Minister Scott Morrison on Monday demanded an apology from the Chinese government for tweeting a “falsified” and “repugnant” image of an Australian soldier killing a child in Afghanistan, amid escalating political tensions between Canberra and Beijing.

Morrison also demanded that the Chinese foreign ministry delete the fake tweet attacking the Australian Defence Force in the wake of a war crimes inquiry.

Amidst spiralling tensions between the two nations over trade issues, Chinese foreign ministry spokesperson Zhao Lijian on Monday tweeted a graphic image showing a grinning soldier holding a bloodied knife to the throat of a child holding a lamb.

“Shocked by murder of Afghan civilians & prisoners by Australian soldiers. We strongly condemn such acts, & call for holding them accountable,” Zhao tweeted along with the picture.

“Don't be afraid we are coming to bring you peace,” reads the message on the image, referring to a report by Australia's military earlier this month which found “credible information” that some Australian soldiers were involved in the murders of 39 Afghan civilians and prisoners between 2009 and 2013. 

The report recommends a total of 36 incidents be referred to the Australian Federal Police (AFP) for criminal investigation.

Morrison said the image tweeted by Zhao was “falsified”, “truly offensive” and “repugnant”.

“The Chinese government should be totally ashamed of this post. It diminishes them in the world's eyes,” he said.

The image, the prime minister said, is “deeply offensive to every Australian, every Australian who has served in that uniform, every Australian who serves in that uniform today, everyone who has pulled on that uniform and served with Australians overseas from whatever nation, that they have done that. It is utterly outrageous and it cannot be justified on any basis whatsoever.”