Huawei faces further investigation into Chinese 'spying' allegations Adding to Huawei's problems, Canada indicated on Tuesday that it would exclude Huawei from firms allowed to build a secure Canadian government communications network, citing possible security risks. In March, Australia barred Huawei from seeking contracts for the country's National Broadband Network due to cyber security concerns. By contrast, the European Commission has delayed a trade case against the two Chinese telecom equipment makers, easing tensions between the European Union and its second-biggest trading partner. The US panel's 52-page report did not present concrete evidence that the companies' equipment had been used for espionage, but a classified annex provides "significantly more information adding to the committee's concerns," it said. Current and former US intelligence officials said Huawei and ZTE, both based in Shenzhen in southern China, pose potential national security threats, but there did not appear to be a consensus about whether security breaches involving their equipment had been confirmed. One former US official said there were "smoking guns" that justified suspicions about Huawei, noting that the defense industry was a primary target. Another former senior US intelligence official said the threat of illegal eavesdropping may be more theoretical than actual. On Monday, House Intelligence Committee Chairman Mike Rogers referred to alleged instances of "beaconing" of information to China, though he did not name any specific users of Huawei's equipment that had been affected. In Britain, the Chinese firm's gear sits at the core of BT's national phone network and is being used to build 4G mobile broadband networks.