Chinese telecommunications company Huawei Technologies has denied media reports that ASIO is investigating whether it is employing technicians in Australia with direct links to the People's Liberation Army.

The Australian newspaper reports, without citing anyone, that claims have been made by Huawei employees in Sydney and Melbourne who approached ASIO. Huawei, whose links have been the subject of scrutiny by US and British intelligence agencies, strongly denies that it has any connections with the PLA, the newspaper reports.

The PLA is the unified military organisation for China's land, sea and air forces. Concerns about its links to Huawei centre on fears that the Chinese Government uses the commercial arrangements of its state-owned businesses for espionage.

Huawei Technologies hasn't been contacted by the Australian Security Intelligence Organisation about any investigation, the Chinese network-equipment maker said in an email today.

Huawei officials met with the ASIO in June to provide an introduction to the Chinese company, Ross Gan, a spokesman at Huawei, China's biggest telecommunications-equipment maker, said in the email. The meeting was a routine briefing Huawei provides to governments, the industry and customers, Gan said.

Huawei has been stymied in North America by security concerns. The company's $2.2 billion joint bid with Bain Capital LLC for the computer-gear maker 3Com was withdrawn amid US government concern that China would gain access to 3Com's anti-hacking technology used by the US Defense Department.

It's a “misconception” that Huawei is linked to the Chinese government, Tim Watkins, Huawei's vice president for western Europe, said in an interview in London last month.