The Australian government was accepting bids for building a high-speed Internet network within the country. When bids opened up the Australian government decided to block the Chinese firm Huawei from the bidding process. The reason cited for blocking Huawei from bidding was security with many cyber attacks carried out against corporations in the West believed to have originated from China.
Australia's Prime Minister Julia Gillard said the blocking Huawei the bidding process was one of the "prudent decisions" the Australian government had made to ensure that the planned network functions properly. The Washington Post reports that intelligence officials suggested the government ban Huawei from the bidding process.
According to the source, intelligence officials cited increasing attempts to gain access to computer systems of Western nations that have been traced to China. Naturally, Huawei spokespeople deny that the company is a security risk.
[via Washington Post]