Prime Minister Tony Abbott has stamped out speculation that Huawei might be allowed to participate in the National Broadband Network, saying the Coalition has no intention of lifting the government's block on the Chinese company.

Mr Abbott ruled out any softening of the Coalition's stance on the telecommunications giant in a letter to Opposition Leader Bill Shorten.

In response to a request from Mr Shorten for a briefing on the Huawei matter, Mr Abbott replied that his new government had "no intention" of reviewing the former Labor government's decision to block Huawei out of the NBN.

On Friday, Mr Lord told the company’s staff to hold their heads up high and be ‘‘proud to be Huawei’’.

Mr Lord’s letter to staff came after Prime Minister Tony Abbott categorically shut down the speculation that Canberra was going to relax the previous government’s ban on Huawei.

‘‘While much of this week’s commentary has focused on cyber security,’’ he said in a letter to all staff.

‘‘I want to make it crystal clear that Huawei has never been presented with any evidence that our company or technology poses any kind of security risk.’’

The former fleet commander played down the importance of the NBN to Huawei’s business operation.

‘‘Despite the NBN decision, last year was our most successful year to date and today’s Huawei’s Australian business is bigger than ever.’’

Recent comments from Communications Minister Malcolm Turnbull and Trade Minister Andrew Robb have hinted strongly that the Coalition would review the ban on Huawei.

Last week, Mr Turnbull described the company as a "credible business", while Mr Robb said Huawei had a "big future in Australia".

"This is a humiliating slap down for Malcolm Turnbull," Labor communications spokesman Jason Clare said on Friday, adding that the Coalition was "divided on this important national security issue".

Last week, Mr Shorten wrote to Mr Abbott seeking urgent briefings from intelligence chiefs on the matter.

Fairfax Media understands this request was knocked back, but the Prime Minister responded by declaring that the Labor decision would not be changed and that the security assessments about the issue remained "current".

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. The company denies any such links and has said it has "a very good track record".

Mr Abbott's letter comes after Treasurer Joe Hockey and Attorney-General George Brandis had hosed down speculation about a more open approach to Huawei.
Asked on Sky News on Tuesday night whether the Treasurer could "see any way that Huawei would be allowed to invest in our NBN project", Mr Hockey replied: "No".
The decision to block the Chinese company has been met with concern from Chinese officials and business leaders.

"The decision on Huawei will no doubt have an impact on the free trade agreement with Australia," a Chinese diplomat said, who spoke on the condition of anonymity. "Why should we allow Australian companies better access to China when Australia stops one of the most respected Chinese companies from doing business here?"

The diplomat said Australia placed a higher premium on the US alliance than the trading relationship with China and the American intelligence services might be behind the Coalition's new policy.

The decision to uphold Labor's ban on Huawei received extensive media coverage in China and stoked a nationalist backlash from citizens. Many have urged Beijing to retaliate with a ban on imports of Australian agricultural products.

The Huawei ban has already had an impact on the activities of Chinese technology companies and telcos in Australia. A Chinese telco executive, who declined to be named, said he had received phone calls from concerned customers.

China Chamber of Commerce in Australia, the body representing the largest Chinese companies in Australia, issued a strongly worded and rare public statement last year when the ban on Huawei was first revealed. It said the ban had caused widespread concern and anxiety.

with Peter Cai, Jonathan Swan