The Western Australian government has decided to go ahead with its US$200 million contract with Huawei to build a new digital radio system for Perth’s trains, ABC reported.

Huawei was awarded the contract by the Australian Public Transport Authority in July last year as part of a joint venture with UGL. One month later, Canberra announced a ban on Huawei for 5G projects in Australia.

“The Huawei and UGL representatives confirmed they would be able to source equipment required for the project. Further confirmation was subsequently received by the PTA,” Saffioti was quoted as saying in the report.

The allegations by the United States Justice Department in January prompted greater scrutiny of how the Chinese tech giant does business and intensified a trade dispute between the US and China.

Saffioti noted the government will continue to monitor this contract with the involvement of other key state agencies.