Huawei Australia chairman John Lord has suggested xenophobia was a factor in the Federal Government's decision to ban the Chinese telecommunications giant from supplying Australia's 5G mobile network.

Mr Lord told the ABC's AM program that Huawei's exclusion from the 5G rollout at the height of Liberal leadership tensions last week was unfortunate and underscored diplomatic strains between Canberra and Beijing.

"We're not having an open discussion," he said.

"We're doing a discussion with a bit of xenophobia around it and I think Huawei's been caught up in this which is sad for a commercial company.

"It [xenophobia] is not allowing an open debate about how we embrace these new innovations and technologies so that Australia gets the best innovation and technology.

"There's been a lot of pressure on from the US on Australia not to go ahead with Huawei. We've seen many statements out of the US and many visitors who've made that message."

Mr Lord said he learned of Huawei's ban in a telephone call on Thursday morning from the secretary of the Department of Communications shortly before a media release was issued announcing the decision.

"It was a great surprise to me," he said.

"I was very disappointed given the chaos going on in Canberra last week that such an important [decision] on 5G such as this was made in that environment."

Huawei denies Chinese Government control

The statement by Communications Minister Mitch Fifield and then-acting Home Affairs Minister Scott Morrison did not specifically name Huawei but referred to national security concerns about companies likely to receive "extrajudicial directions from a foreign government".

Mr Lord rejected perceptions from the ministerial comments that Huawei fell into that category and was potentially an arm of the Chinese Government and its intelligence agencies.

"I hope the Government didn't mean that. The Australian board of three independent directors and 700 employees would refute that and be quite upset by such an allegation, if that was made," Mr Lord said.

"Huawei has never had any instructions from the Chinese Government or intelligence officials to Huawei in China or to anywhere in the globe to do such activities."

In banning Huawei, the Federal Government seized on national security regulations in China that force all Chinese companies to work with intelligence agencies when ordered.

But Mr Lord said the Chinese regulations did not cover Huawei's operations in Australia.

"We have a legal opinion which says it does not affect Huawei in China and, even more so, does not affect Huawei in Australia," Mr Lord said.

"We only obey and only listen to Australian laws."

Mr Lord said despite being banned for the 5G rollout, Huawei was not considering pulling up stumps and exiting Australia.

He said he had not discussed Huawei's banning with Communications Minister Mitch Fifield but would be travelling to Canberra to get more details on how the decision was made.

Huawei was previously banned from supplying technology to the National Broadband Network in 2012 on national security grounds.

Follow Peter Ryan on Twitter @peter_f_ryan.