Huawei hardware will continue to be allowed to be part of the UK's 5G network infrastructure but with restrictions, as the government has decided against an outright ban.
Under pressure by its US equivalent, the UK government has approved Huawei hardware use as long as it plays no part in the core in the network. Nor is it allowed to be used in 5G infrastructure near nuclear power plants and military bases.
It will also only be allowed to make up 35 per cent of the overall kit in the network, including the radio masts.
Effectively, that means Huawei presence in existing 5G equipment used by the major networks will continue to be allowed. It would have proven a costly exercise to remove and replace it if an overall ban was enforced, and the UK's 5G rollout plans throughout 2020 and beyond could have been dramatically hampered.
"Huawei is reassured by the UK government's confirmation that we can continue working with our customers to keep the 5G roll-out on track," said the company's UK chief, Victor Zhang (as reported by the BBC).
"It gives the UK access to world-leading technology and ensures a competitive market."
The UK's culture secretary, Nicky Morgan, released a subsequent statement, recognising Huawei as a "high-risk vendor" but admitting that it is a risk worth taking for the benefit of the country's communications growth:
"We want world-class connectivity as soon as possible but this must not be at the expense of our national security. High-risk vendors never have been and never will be in our most sensitive networks," she said.
"The government has reviewed the supply chain for telecoms networks and concluded today it is necessary to have tight restrictions on the presence of high-risk vendors.
"This is a UK-specific solution for UK-specific reasons and the decision deals with the challenges we face right now."