The Australian newspaper has set a few cats among the pigeons when it ran a story describing telecoms equipment company Huawei as  a "shadowy" business involved in espionage for the Chinese Government.

It claimed unnamed Australian security agencies would "closely examine" the bid lodged by SingTel Optus for the $4.7 national broadband network funding, which it said  might involve Huawei equipment.

Gosh, how frightening. And coming so soon after Optus rival Telstra was eliminated from the bidding. Hmmm.

Huawei isn't everyone's favourite company, but it doesn't appear too shadowy to most industry observers. Its DSL equipment is used in more than 30 percent of the world's exchanges, including many in Australia.

Red eyes in Big Blue

Wikipedia says Huawei's gear is used by 35 of the world's top 50 telecoms operators. And ­ how scary is this? ­ it's a supplier of equipment to IBM.

More: Huawei yesterday said it is making Google Android mobile phones that can be ordered by any Australian operator. Will Beijing spooks listen in to all our calls?

Perhaps we should all relax. Aussie spooks don't seem too concerned by Chinese-based telecoms operators, who have been handling international networks for the Department of Foreign Affairs and Trade since 2002. That's the same DFAT which ineffectually bugged the Chinese Embassy in Canberra at a cost of $5 million in 1991. So who's listening to whom?