Brandis's statement was an obvious shock to the Chinese company who said over half of Australians already use a Huawei product for parts of their daily telecommunications needs, because Australian Communication Minister Malcolm Turnbull and Trade Minister Andrew Robb recently showed support publicly to review the ban, raising hope the controversial policy would be relaxed.

Just two days after the remarks, Australian Prime Minister Tony Abbott reportedly ruled out any involvement by Huawei in the NBN plan.

According to the local daily The Australian, Abbott sent a letter to the opposition leader Bill Shorten, saying "his government has not intention of reviewing the decision of the previous government."

"As you are aware, this decision was made on national security grounds based on security agency assessments which remain current," Abbott added.

On condition of anonymity, a local analyst working for one of the two major Australian media groups told Xinhua that the current conservative government's decision would give a big blow to the relation with its major trading partner China when the two countries were struggling to reach a free trade agreement (FTA), which Abbott hoped for success in a year.

"This is really not that friendly and China should think about showing more toughness this time," he said.