Chinese equipment maker, Huawei Technologies out rightly refuted the charges leveled against it by Australian security agencies that the company may have links to the Chinese government and the military.

The allegations surfaced upon Austealian media particularly, The Australian reporting that Australia’s security agencies would closely examine Huawei’s association in building Australia’s national broadband network along with Optus.

"Huawei is privately held and 100 percent owned by its employees, administered through an employee share ownership plan," the company said. "No other organizations, including the government, army, or business hold stakes in Huawei."

The Australian earlier reported that Huawei founder, Ren Zhengfei came from military background. Huawei however refuted this fear reasoning that military service was common among North America and Europe business leaders as well.

"Huawei only manufactures telecom equipment for commercial public use, and its main customers include 35 of the world''s top 50 telecom operators," the company said. Huawei said that its sales to the Chinese government accounted for only 0.5 percent of its income in 2007.

"Before Huawei can work with those companies, it must meet a strict auditing process that reviews the company's strategic planning, process, management system, quality control, and human resources," the statement said.  

Earlier in the year Huawei had suffered similar espionage charges over its bid to acquire stake in USA’s 3Com. The deal ultimately fell through.