Keeping out China from Australia's multi-billion national broadband network (NBN) telecommunication build up was unjust, especially if the decision was based on mere suspicions.

This according to Beijing, which issued an official statement on Friday last week, criticising what it called as a "deeply troubling" economic development in Australia, which counts China as it biggest trading partner.

In a statement issued by Chinese Commerce Ministry spokesman Shen Danyang, Beijing made known its deep concerns over Canberra's decision to bar Huawei Technologies from participating in the $36 billion NBN roll out.

"Australia should not exclude a company from participating in a fair competition on so-called national security grounds in absence of evidence," Shen was quoted by The Associated Press (AP) as saying on its Monday report.

Attorney-General Nicola Roxon had recently revealed that Huawei will not be permitted to play a role in the NBN communication infrastructure construction on the strength of recommendations provided by the Australian Security Intelligence Organisation (ASIO), the country's intelligence agency.

Roxon, however, had declined to specify the case against Huawei and merely hinted that the company has been viewed as a security risk.

In a supporting declaration, Prime Minister Julia Gillard defended the decision, stressing that it was made in support of Australia's national interests, which she added should be understood by the Chinese government.

Shen, however, expressed disappointment that Canberra seemed to have overlooked Huawei's track record as active supplier for similar projects around the world.

He added that Huawei's Australian operations have been under the guidance of key local executives, with some 90 percent of its employees comprised of Australians, AP said.

Huawei's banning from the NBN, according to The National Times, has sparked a diplomatic tension between Canberra and Beijing, which according to an identified analyst cited by the paper was mostly attributed to the mishandling of the event by the Australian government.

The Chinese government, the paper said, felt slighted by the decision and took it as a form of discrimination.

The row could have been prevented had Canberra opted to directly communicate with Beijing, the source told the publication.

"There is already a deeply ingrained perception in China that Australia does not welcome the Chinese investment, especially in light of the past rejections of Chinese mining investment projects, although some of the companies had to share the blame as well," the analyst was quoted by The Age as saying on Monday.

He suggested too that the misunderstanding can still be resolved if the Australian government would become more transparent on its dealings with China.

"The relationship between China and Australia can only move forward through more frank exchange of ideas," the source said.

Analysts viewed Australia's move as wholly linked to the recent spates of cyber attacks directed against Western governments, which intelligence officials have been blaming to hackers operating from China.

Washington has made clear that it suspects Chinese hackers of breaching the IT security protocols of a number of government offices in the United States.

Major American companies have also been singled out in the cyber attacks coming from China, U.S. intelligence officials said.