Chinese telecoms equipment maker Huawei Technologies refuted Australian claims it poses a security risk, calling the criticism "ill-informed" in an open letter on Monday that threatens to inflame already heightened Sino-Canberra tensions.

Australia is likely to ban Huawei from participating in a 5G mobile telecommunications rollout in the nation as it fears the company is de facto controlled by China and sensitive infrastructure will fall into the hands of Beijing, according to Australian media reports.

Huawei denies the allegations, and, in a move that threatens to draw Australian politicians into a public spat that will further stain relations with China, dismissed Canberra's security concerns.