Huawei was banned by the former Labor government which thought there were “cyber-security concerns” in the Chinese doing the work. But some senior officials in the new Liberal-led Coalition government, including Communications Minister Malcolm Turnbull, have supported a review of the ban, raising expectations it would be scrapped.
However Attorney-General George Brandis said that after due consideration the government had decided not to change the policy. Apparently he has new briefings from the nations spooks which he thinks means that it would be a bad idea to let the Chinese in.
However the move could cause some problems as the Chinese are a major trading partner and the pair are trying to hatch out a free trade agreement. The US is Australia's traditional in the region and believes that the only nation with a right to spy is itself.