Treasurer Joe Hockey has potentially exacerbated tensions with China by bluntly rejecting any investment from Huawei in the national broadband network.

In the strongest rejection yet of the Chinese technology company, Mr Hockey went one step further than Attorney-General George Brandis, who had indicated on Tuesday the Abbott government would not – at this stage – be overturning the previous government's decision to lock Huawei out of the NBN.

Treasurer Joe Hockey has rejected any investment by Huawei in the national broadband network. Credit:Alex Ellinghausen

It is understood ASIO suspects Huawei of having close links to the Chinese government and worries that the company, if allowed to provide equipment for the NBN, could compromise Australia's national security.