These included £170m to upgrade encrypted technology for government business, as well as new protections against Chinese cybercrime and attempts to influence UK university research.
"Let me speak plainly, this activity involves a covert and calculated attempt by a foreign power to interfere in our security affairs in favour of its own interests and this government will not tolerate it," Jarvis told MPs.
Commons Speaker Sir Lindsay Hoyle and his counterpart in the House of Lords, Lord McFall, circulated the MI5 warning to MPs and peers on Tuesday.
Writing to MPs, Sir Lindsay said Chinese state actors were "relentless" in trying to "interfere with our processes and influence activity at Parliament".
He said the Chinese MSS was "actively reaching out to individuals in our community", and that they wanted to "collect information and lay the groundwork for long-term relationships, using professional networking sites, recruitment agents and consultants acting on their behalf".
Other elements of espionage described in the MI5 alert include all-expenses paid trips to China, and payment for information through cash or cryptocurrency.
Targets are said to include "Parliament staff, economists, think tank employees, geo-political consultants and those working alongside [the government] including MPs and members of the House of Lords".
Jarvis highlighted a pattern of behaviour around Chinese spying attempts, which he said he would take "all necessary measures" to protect against, including updating and strengthening national security powers.
He said rules will be tightened to tackle covert funding of political parties, while the Electoral Commission will be given greater enforcement powers.
There will also be security briefings for all parties and candidates standing in the elections next May for the Scottish Parliament, Welsh Senedd, and councils across England.
Stressing that China is still the UK's third biggest trading partner, Jarvis said the UK would nevertheless use sanctions "as necessary".
