It says Huawei got around this rule by using USA semiconductor manufacturing equipment at factories in other countries.
In January, after a prolonged and hard debate, the government chose to allow Huawei to play a role in 5G but to limit its market share to 35% of the network and keep it out of the most sensitive parts.
His initial plan to allow Huawei to supply up to 35 per cent of the networks was approved by the UK's intelligence agencies, which argued that any mass surveillance risks associated with the equipment could be contained. Most of the UK's mobile networks have said they would use and deploy Huawei's 5G products only outside the core in the "periphery".
Now it looks like the United Kingdom is preparing to completely "phase out" Huawei 5G tech by 2023.
"We are happy to discuss with NCSC any concerns they may have and hope to continue the close working relationship we have enjoyed for the last ten years". It is a "high risk" vendor in the UK's infrastructure.
The push for new plans comes amid growing backlash among Conservative MPs against Chinese investment and a lack of transparency around Beijing's handling of the coronavirus pandemic, according to the Telegraph.
The pressure to do so intensified in the wake of the coronavirus pandemic after reports emerged of China not warning the worldwide fraternity in due time to prepare for the crisis.
The Trump administration unveiled a plan this month to block global chip supplies to Huawei, the latest move in a concerted campaign against the company amid wider tensions between Washington and Beijing.
So far, the Federal Government is not commenting on the new emergency British review, with a spokesperson for Home Affairs Minister Peter Dutton saying the decision is "a matter for the UK Government". Sir Iain Duncan, a conservative leader stated that "this is very good news and I hope and believe it will be the start of a complete and thorough review of our risky dependency on China".
He said: "It was obvious that it's becoming increasingly hard [for ministers] to get through legislation that would give a legal basis for Huawei to be in the advanced 5G network". Huawei has repeatedly denied these accusations.