Huawei have been told by the US Department of Commerce that security concerns have prevented the Chinese company from participating in a project to build a national wireless network.

"This was a national security decision about a public safety network," said a department official, who requested not to be named. "The specific concerns won't be elaborated on, because we don't conduct national security analyses in public."

Huawei, a major telecommunications equipment supplier, has been seeking answers after it was denied participation in the project to create a nationwide wireless network for use by police, firefighters, and emergency personnel. On October 12, Huawei said that the company had requested the Department of Commerce to explain the decision.

The department's National institute of Standards and Technology informed Huawei of the decision on September 30, according to the official. Rebecca Blank, acting secretary for the Department of Commerce, made the decision after consulting with relevant US government agencies, the official said.

The department's decision has no bearing on any other government projects, he added.

The denial is just the latest round of opposition the company has seen from the US government over its business activities in the country. US government officials have been concerned about Huawei's alleged ties with the Chinese military, and how networking technology bought from the company could be secretly used by China to spy on US activities.

Huawei has complained the company is being treated unfairly. It has sought to clear its reputation and even asked the Amercian government to investigate the company. So far, the US has shown no signs of taking that offer.

In this latest setback, Huawei has said the decision could have a "chilling effect" on its US business activities, adding that the company is being played as a pawn in a geopolitical chess game.