Chinese telecommunications company Huawei Technologies has denied reports that the Australian security forces are investigating it on spying charges.

Australian spooks are apparently worried that Huawei technicians in Australia have direct links to the People's Liberation Army. According to the The Australian newspaper claims have been made by Huawei employees in Sydney and Melbourne who approached the Aussie spy agency Australian Security Intelligence Organisation. Huawei has been in trouble over similar claims in the US and UK, although it strongly denies that it has any connections with the Chinese military.

The company's $2.2 billion joint bid with Bain Capital for the computer-gear maker 3Com was withdrawn amid US government concern that China would gain access to 3Com's anti-hacking technology used by the US Defense Department. Huawei officials said it met with the ASIO in June to provide an introduction to the Chinese company.

But the meeting was routine, Ross Gan, a spokesman at Huawei, China's biggest telecommunications-equipment maker, said in the email. The meeting was a routine briefing Huawei provides to governments, the industry and customers, Gan said.