Huawei has been supplying networking equipment to BT since 2005 and is heavily involved in supplying equipment for BT's national superfast broadband rollout.
The UK's relationship with Huawei is completely at odds with US, where prime minister David Cameron recently welcomed the company with open arms after it promised a £1.3 billion investment up until 2017 in research, development, centres of excellent and procurement.
The official line from parliament's intelligence and security committee is that it is 'considering' the involvement of Huawei in the UK, but it would not provide any further information into specific enquiries at this stage.
However, the committee's chairman, Sir Malcolm Rifkind, told The Guardian this week that it has been taking evidence in private for some months from members of the security services and a report will be sent to David Cameron by Christmas.
He said: "[We have been] reviewing the whole presence of Huawei in regard to our critical national infrastructure and whether that should give rise for concern.