Chinese Foreign Ministry spokesman Lu Kang, was quoted in the Global Times, as telling a briefing on Thursday that the two countries had always co-operated in a way that was mutually beneficial.

Lu urged Canberra to avoid using excuses to create artificial obstacles and discriminatory practices.

Australia, in a joint statement made by Acting Home Affairs Minister Scott Morrison and Communications Minister Mitch Fifield on Thursday, said having any companies involved in the rollout who were subject to foreign laws that were in conflict with Australian law was too big a risk.

Ruan Zongze, executive vice-president of the China Institute of International Studies, told the newspaper that the ban indicated Australia was biased against Chinese companies, contradicting the spirit of free trade which it claimed to champion.

"The Australian government becomes paranoid when it comes to matters involving China, which is terrible and absurd," he said.

Fu Liang, a Beijing-based telecommunications industry expert, said Australia's 5G development would be very slow now that it blocked the two Chinese firms. He termed it a political move.

"However, it's still too early to say that Chinese companies will lose all their opportunities in the Australian market," he said.

The chief executive of telecommunications industry website cctime.com, Xiang Ligang, said the ban meant a huge loss for Australia's 5G development as Australian companies would have to spend up to 30% more to build 5G networks.

But he said other countries were unlikely to follow Australia's lead and block Huawei over alleged security concerns.

"Australia followed in the footsteps of the US [by going against China in such a manner], but other countries are unlikely to follow suit," Xiang said.