Chinese-owned telecommunications giant Huawei has been blocked from rolling out Australia's 5G network due to security concerns.
The government said today the involvement of a company "likely to be subject to extrajudicial directions from a foreign government" presented too much risk.
Huawei has said it would never hand over Australian customer data to Chinese spy agencies, but the government's statement said no combination of security controls sufficiently mitigated the risk.
Acting Home Affairs Minister Scott Morrison said the government was committed to protecting 5G networks.
The decision also affects ZTE Corp, a Chinese maker of mobile devices.
Australia barred Huawei, the world's largest telecommunications equipment supplier, from bidding for contracts in 2011 for the national broadband network.
5G networks will start commercial services in Australia next year.
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