Prime Minister John Key seized on the opportunity to exploit the speculation sparked by Mr Hooton.
"What you know is they're desperately unhappy little campers over there in Labour," he told reporters in Shanghai.
"They don't like us but they sure as hell don't like each other so who knows what he's going to do next?"
Mr Key said Mr Jones was "more National than he is Labour" and said that if the Northland-based MP asked to join National, he would probably say yes.
Mr Jones' response was similarly tongue in cheek.
"The Prime Minister has got Orient overload, too much Wrong Tung soup!"
He said his political future lay with Labour. "There's always a bit of white water around but beyond a sliver of doubt we have our leader in David Cunliffe, and no one can accuse me of not pulling my weight or trying to boost the brand of Labour. I think I've been tireless since Christmas in that regard."
Mr Peters left for China himself yesterday and was unavailable for comment but earlier told RadioLive there was no basis to Mr Hooton's suggestions.
"Theres's not a shred of truth in what Mr Hooton writes when Winston Peters is concerned. Whatever he writes, think the opposite.
"He has a pathological hatred of me and he spends an amount of time talking about it. It's sad really."
Mr Cunliffe would not comment other than to say Mr Hooton had been "interviewing his keyboard again".