The decision to continue the ban on Huawei's involvement in Australia's National Broadband Network has become a sticking point in free trade negotiations according to The Australian.
Chinese Commerce Minister Gao Hucheng raised the decision in talks with Trade Minister Andrew Robb in Beijing yesterday – although the comments were made outside of the formal part of the meeting.
Mr Robb denied the decision to continue to block the Chinese telco would hamper FTA negotiations.
"I don't agree with that all," Mr Robb said. "Our decision was based on the advice of our national security agencies."
Mr Robb has presented China with a revised framework which he hopes will allow a free trade agreement to be finalised within the next year.
"It's against the background of eight years of negotiations. A lot of technical work has been done, but the negotiations have stalled at a point where the very difficult issues are there on the table.
"We feel that we have a way through and be have both agreed in our combined view that there is the foundation for concluding the FTA in the not too distant future."
The new government has committed to securing an Australia-China free trade agreement by September next year.
Mr Robb's meeting mark the 20th round of talks in eight years.
A date for further official discussions has yet to be set.
