China's National Intelligence Law plainly says that Chinese organizations and citizens shall support, assist and co-operate with state intelligence work, prompting national security concerns in Canada.
The US has banned federal funding for tech powered by Huawei, whilst several other countries, including Canada and New Zealand have either banned or are expected to ban Huawei infrastructure from new networks.
Huawei, the Chinese telecom giant, also a world leader in 5G technologies, has been accused by the USA of conducting espionage with its high-speed telecommunications systems.
Huawei has repeatedly denied any links to the Chinese Government apart from paying it their taxes.
The FT cited two sources familiar with what it said was a conclusion by the government's National Cyber Security Council (NCSC), which past year said technical and supply-chain issues with Huawei's equipment had exposed national telecom networks to new security risks.
Huawei, though it is one of China's marquee global companies, emphasizes it is not a state-controlled enterprise and says it would never spy on behalf of Beijing or anyone else.
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The reports cited anonymous sources as saying that there are ways to limit cybersecurity risks, and that the U.K.'s decision would carry weight with European allies who are also evaluating the safety of their networks.
The NCSC didn't immediately respond to a request for confirmation and comment.
The Trump administration is said to be developing an executive order that would effectively ban USA firms from using components from China in key telecom networks.
"In this context, Huawei has been working with different governments and industry partners to put in place agreed standards, so that people can take those standards to measure how secure the products from all of the vendors are", Xu told Reuters in an emailed statement on Monday.
The advice suggests the United Kingdom may be reticent to follow other nations in banning Huawei from supplying 5G technology. However, there's a government decision due around April to say whether or not Huawei will be barred from contributing equipment to the UK's 5G network. Speaking in Munich at a security conference last week, Sir Alex Younger, the MI6 chief, also suggested that an outright ban might not be necessary, although he said the issue was "complicated". We have set out the improvements we expect the company to make.