Huawei vehemently denies involvement in Chinese spying.

Many governments around the world have shut out the Chinese firm amid worries its gear could facilitate Chinese spying.

Washington says its technology could allow "back doors" for Chinese spying - an allegation denied by Huawei and Beijing.

While authorities do not release details of their reasons for rejecting bids, Richardson said Chinese spying was a major factor in government decision-making.

Participants were told about threats from Chinese and Russian state intelligence networks as well as specific instances of Chinese spying backed by state agencies.

In response to questions about allegations of Chinese spying, Lu Kang, a spokesman for China's ministry of foreign affairs, said: The accusations are unfounded.

Chinese spying on Australia has been the subject of much speculation by analysts but senior government officials have largely steered clear of making public complaints.

The United States is cracking down on Chinese spying, with the FBI having interviewed dozens of visa holders about their possible ties to Chinese intelligence.