According to IANS reports, the Australian government has blocked Huawei from providing 5G technology for the country's wireless networks.
The company is very disappointed with the government's decision. Huawei is a world leader in 5G," the Chinese company said on Twitter.
The announcement follows reports that the Australian national security agencies were concerned about alleged ties between Huawei and the Chinese government.
The Australian government said in a statement that the involvement of telecom equipment suppliers "who are likely to be subject to extrajudicial directions from a foreign government that conflict with Australian law" could mean the country's wireless carriers are unable "to adequately protect a 5G network from unauthorised access or interference".
The statement, however, did not mention China or Huawei by name.
According to IANS reports, Huawei has repeatedly rejected the security concerns, insisting that it is "a private company, owned by our employees with no other shareholders".
According to Guardian reports, Australia's relationship with China has come under considerable strain in the past 18 months as Canberra's focus on Beijing's influence in domestic affairs has increased.