Yang Tengbo, described in a ruling last week by the UK's Special Immigration Appeals Commission (SIAC) as a "close confidant" of Andrew, waived his right to anonymity on Monday so he could respond to the accusation.
"I have done nothing wrong or unlawful, and the concerns raised by the Home Office against me are ill-founded," he said in a statement released by his lawyer, referring to the UK's interior ministry.
"The widespread description of me as a 'spy' is entirely untrue."
The 50-year-old, who had previously been granted anonymity in the SIAC proceedings, was removed from a flight from Beijing to London in February 2023 and told that the UK intended to ban him from the country.
This happened the following month on national security grounds.
Yang appealed against the ban at the Special Immigration Appeals Commission, which rejected his case in a written ruling last Thursday – the first time the reported relationship had come to light.
The Home Office told Yang they had reason to believe he was "engaging, or had previously engaged, in covert and deceptive activity on behalf of the United Front Work Department (UFWD) which is an arm of the Chinese Communist Party (CCP) state apparatus," in a July 2023 letter quoted in SIAC's ruling.
The Home Office said it believed Yang was "likely to pose a threat to UK national security".
Yang's lawyer, Guy Vassall-Adams, told the High Court on Monday that his client had waived his right to anonymity to make a statement, and the judge Martin Chamberlain agreed.
On Friday Andrew, the younger brother of King Charles, issued a statement to the BBC and other media in which he said he had "ceased all contact" with the individual once concerns were raised.
The ruling said evidence obtained from Yang's phone showed Andrew had authorised him to set up an international financial initiative to engage with potential partners and investors in China.
The ruling did not say what the fund was intended for.
A spokesperson at the Chinese Foreign Ministry said on Monday that China had always been open and above board and has never engaged in deception or interference.
The spokesperson added that the groundless speculation was "not worth refuting".
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The Duke of York is to stay away from the royal family's traditional Christmas gathering at Sandringham this year amid the controversy surrounding his links to an alleged Chinese spy.
Andrew will miss what was expected to be one of the largest festive events at his brother, the King's private Norfolk estate, where 45 members of their family had been expected to spend Christmas Day.
The duke has hit the headlines once again this week after a High Court hearing revealed alleged Chinese spy Yang Tengbo, who was banned from the UK, was said to have been a "close" confidant of Andrew.
The duke's ex-wife Sarah, Duchess of York will also miss Christmas at Sandringham, in what will be seen as a show of solidarity for her former husband.
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with PA
