Huawei Technologies has been allowed a restricted role in building parts of the 5G network across the UK.
Huawei are currently under scrutiny in the US as they told their allies to stay clear of their technology, as it has been claimed the technology company could by spying for China.
On Tuesday the National Security Council chaired by the prime minister met with Huawei.
Two sources told Reuters under a condition of anonymity, that the UK will not allow Huawei access to the core parts of the 5G network.
Philip Hammond said, “It’s essential that we get the balance right, ensuring that our networks are built in a way that is secure against interference from whatever source, but also are competitive.
“Where our security experts tell us that there are ways in which we can maintain security, whether it’s in networks or installations, that avoid the most economically costly outcomes, then we should look very carefully at those options.”
Huawei is the worlds largest provider of telecoms equipment; the tech giant was set up by an engineer who worked for the China’s People’s Liberation Army and was founded in 1987.