An anonymous reader writes "It looks like paranoia regarding Chinese cyber-espionage is riding sky-high within the Australian Government. It was confirmed today that the country's Attorney-General's Department had banned Chinese networking vendor Huawei (the number two telco networking equipment vendor globally) from bidding for work supplying equipment to the government's $50 billion National Broadband Network universal fibre project. The unprecedented move comes despite Huawei offering to share its source code with security officials, and despite Huawei not being accused of breaking any laws in Australia. Questions over the legality of the Government's move are already being raised."
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