Australia looks set for another diplomatic clash with China with reports this morning the Turnbull Government will reject a bid from the Chinese telco giant Huawei to help build Australia's next generation 5G mobile network amid national security concerns.

The Federal Government has also sought to counter China's rising influence in the Pacific with the announcement yesterday Australia will fund a $200 million high-speed undersea communications cable connecting the Solomon Islands and Australia.

Australia stepped in with aid money to counter a bid from Huawei to lay the cable.