Pavlou was unsuccessful in court two years ago after a Brisbane magistrate ruled Xu had diplomatic immunity.
However, he has launched the appeal after seeking legal advice from international experts even though Xu is no longer Brisbane consul-general or in Australia.
Xu did not appear on Friday.
“It’s the principle. I think the court should issue an order against him to make clear such conduct is unacceptable … even if Xu Jie has left the country,” Pavlou said.
“His statement … that really did act as the starting gun to the extended and at times brutal campaign of harassment me and my family have received in Australia.”
Pavlou praised his lawyers Andrew Stumer and Mark Tarrant but did not expect to win, saying it did not sound like Judge Bernard Porter considered Xu Jie an ongoing threat to him.
“He is drawing a distinction between Xu Jie the individual and the Chinese Communist Party,” he said.
“I personally believe Xu Jie was acting as an arm of the Chinese Communist Party.
“The ongoing threats that I face from the Chinese Communist Party are quite significant and I think his statement really was the … dog whistle.”
After Friday’s hearing, Judge Porter reserved his decision until a later date.
“It’s a legally difficult question but the judge is dealing with it in a very professional manner so I am very thankful,” Pavlou said.
“If he does conclude Xu Jie as an individual represents no threat to me I would respect the decision.”
Even if he is not successful, Pavlou believed his matter was still a “landmark case”.
“The fact the judge is going to write a detailed judgment and will very likely make commentary on Xu Jie and the statement … is significant,” he said.
No matter the result, Pavlou says the harassment won’t stop.
He said his family had endured dozens of bomb and death threats as well as efforts to defame them in the past year alone.
“Whatever way the decision goes, sadly I think that … extended campaign of harassment towards my family will continue.”