Australia's decision to exclude China's Huawei Technologies from its $36 billion national broadband roll out will stay, according to Prime Minister Julia Gillard amidst the appeals made by the Chinese.

While avoiding to clearly define the security risks pose by Huawei, presently regarded as the biggest telecom firm in the world, Ms Gillard stressed that her government's decision was fully in line with existing trade practices, which she pointed out should be understood by the Chinese government.

"Any suggestion that (the government decision) is somehow in breach of our trade obligations is simply untrue," Reuters reported the Prime Minister as saying on Thursday.

Attorney-General Nicola Roxon announced this week that Huawei will not be permitted to participate in the nationwide implementation of the national broadband network (NBN) following the advisory furnished by Australian intelligence officials that the company could bring cyber security concerns.

Roxon, however, did not specify the perceived risks attached to the tender being pushed forward by Huawei, which media reports said was trying to secure an NBN contract worth at least $1 billion prior to Canberra's announcement of its exclusion.

Beijing aired its deep dismay on Australia's move and suggested that Australia seems veering away from providing a fair trade environment on Chinese companies seeking to expand their operations in the country.

"We hope the relevant authorities of Australia will provide a market environment for Chinese companies that is fair and free from discrimination, instead of wearing coloured lenses and obstructing Chinese companies' normal operation in Australia in the name of so-called security," Chinese foreign ministry spokeswoman Hong Lei said in a news briefing on Wednesday.

But Ms Gillard stood firm and insisted that China should be aware that the decision was based on rules and regulations that best serve Australia's national interest, all of components of which were also in existence on China's local trade apparatus.

"We've made decisions in the national interest. We've made decisions that we have the ability to make," Ms Gillard told reporters in Canberra on Thursday.

"I know China itself takes a view about its own telecommunication system and roll out, that it's got a special approach to whether there should be foreign investment in that," she added.

Despite rejecting Huawei's tender on the NBN project, Federal Treasurer Wayne Swan has assured that trade relations between China and Australia will not be affected.

China is the country's biggest trading partner and is largely responsible in the ongoing mining boom that fuels much of its economic expansion over the past years.

Huawei confirmed later this week that its business as usual for the multinational firm in Australia despite the apparent setback, according to company spokesman Luke Coleman.

"We have no indication that any other projects have been looked at ... In fact the government has encouraged us to continue to grow our business here in Australia," Coleman told Reuters on Wednesday.

Huawei, he added, still looks forward to play an active role in the NBN implementation while reiterating that the company does not in any way pose a security risk on Australia's telecommunication system or in any other areas.

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