"There is no doubt that instances like this, if proved true, create a period of difficulty," Feakin said. "But one thing that would happen is that there would be mutual assistance provided to be able to plug that gap and no intelligence agency could possibly allow that kind of breach to continue."
Foreign Minister Bob Carr refused to discuss the allegations but said the claims do not jeopardize Australia's ties with its most important trading partner, China.
"It's got absolutely no implications for a strategic partnership," Carr said. "We have enormous areas of cooperation with China."
Sign up for Computerworld eNewsletters.