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The investigation revealed shortcomings in Huawei's engineering process which may have "exposed new risks in United Kingdom telecoms networks".

Pressure has been growing on Huawei in Britain, one of its most important markets in Europe, since a government report in July past year found that technical and supply-chain issues with the company's equipment had exposed national telecom networks to new security risks. It's not as easy for a Chinese company to say no to its government as it might be for, say, Apple to deny an Federal Bureau of Investigation request here in the US.

Concerns about foreign firms helping U.S. adversaries infiltrate sensitive computer systems, whether wittingly or unwittingly, have gained prominence in recent years.

"Huawei is a closely watched company", he added.

Ding also addressed "concerns about China's national intelligence law" by asserting that there is no law by which the Chinese authorities can compel IT firms to "install backdoors" in their technology to enable covert data-gathering.

Since 2012, the world's largest maker of networking equipment, Huawei, has been barred from selling those products in the US on the explanation of security concerns by the USA government.

Germany's cybersecurity agency BSI is investigating whether China's Huawei Technologies could be a security threat after warnings from other countries, Funke newspapers reported on Friday, citing Economy Minister Peter Altmaier. In January, Poland arrested a Chinese employee of the world's biggest producer of telecommunications equipment on spying allegations, along with a former Polish security official.

In a letter to lawmakers last week, Ryan Ding, president of the company's carrier business group, said it would take up to five years to see results.

While speaking to reporters earlier this week, Huawei Poland CEO Tonny Bao said the firm is prepared for such an investment so long as Warsaw accepts it as a "trusted solution" to the problem at hand.

Five Eyes is an intelligence alliance comprising the Anglophone countries of Australia, Canada, New Zealand, the UK, and the United States.

With these 5G build outs looming, senior officials want "to move the needle" with their security messaging, said the source close to the administration.

It also recently hit Huawei and its chief financial officer with charges of bank fraud, obstruction of justice and intellectual property theft.