The Australian government announced the ban on Thursday morning, just a day ahead of the country's 5G auction, citing - unsurprisingly - concerns over national security.
These efforts included passing the Telecommunications Sector Security Reforms (TSSR) past year, a law that introduces new legal measures that allow the Aussie government the ability to intervene and issue directions in cases where there are significant national security concerns.
"This is a extremely disappointing result for consumers".
The Australian government said Thursday that companies that are "likely to be subject to extrajudicial directions from a foreign government that conflict with Australian law" wouldn't be able to guarantee security of the network.
Acting Home Affairs Minister Scott Morrison said the government was committed to protecting 5G networks. It did not specifically refer to the Chinese vendors, but Huawei's statement confirms the impact. The chairman of Huawei's Australian arm, John Lord, responded to claims the company was a risk to national security.
As Reuters highlights, Chinese law requires citizens and organizations to assist, support and cooperate with intelligence work.
According to Efe news, Australian authorities said the two firms had been kept out owing to their dependence on the Chinese government.
Huawei Australia on Thursday continued to highlight its credentials, saying it has "safely and securely delivered wireless technology" in the country for nearly 15 years.
Huawei - one of the world's largest telecommunications equipment and services providers - has been under scrutiny in some countries including the United States and Australia over its alleged close links to Beijing.
"It is. out of step with this attempt to reset the relationship", said James Leibold, Associate Professor of Politics and Asian Studies at La Trobe University.