Controversy that won't go Huawei

Mr Williamson emphatically denies leaking details of concerns in cabinet about the potential role of Huawei in building the infrastructure for the next generation mobile phone network. But why is the supply of telecommunications equipment proving such a bone of contention?

A clue is perhaps given in the explanation that Huawei founder Ren Zhenfei gave to Chinese leader Jiang Zemin about the importance of his company. He told Jiang that telecommunications were crucial to a country's security, adding: "A nation that did not have its own switching equipment was like one that lacked its own military."

It is perhaps therefore unsurprising that the Government has found itself with a difficult dilemma about whether Huawei should be allowed to provide equipment for the new mobile phone network.

On the one hand, Huawei is generally considered to be the world's leading provider of 5G technology, and the British Government is undoubtedly keen to improve trade links with the huge Chinese market, particularly as it prepares to leave the European Union. On the other hand, the company has been banned from supplying equipment for future 5G networks in the US, Australia and New Zealand.

So what is all the fuss about?

First, we need to understand what 5G is. The first generation mobile phone work, introduced in 1979, was an analogue system, capable only of transmitting voice communications. The second generation, or 2G, was a digital system introduced in 1988, which enabled text and picture messaging to also be used. The big change, though, came in 1998 with the launch of 3G, which brought mobile internet access within reach of the general public, and 4G, launched in 2008, took the technology a stage further, with improved speeds bringing gaming services, high-definition and 3D television and video conferencing to people's smartphones.

But 5G promises to be another game-changer. For example, by allowing vehicles to communicate with each other and read maps, it will play a crucial role in the development of driverless cars. It will enable drones to communicate with one another in search-and-rescue missions, or in monitoring traffic. It will be at the centre of the so-called 'internet of things', where everyday household devices will be connected to the worldwide web, such as 'smart fridges' which enable users to order new foodstuffs, or 'smart televisions', where people can watch programmes from both traditional and online broadcasters.

Mike Burgess, director-general of the Australian Signals Directorate, says that in years to come the 5G network will underpin his country's water supply, electricity grid and health systems. He says the country cannot afford to take any chances.

"The stakes could not be higher," he says. "This is about more than just protecting the confidentiality of our information — it is also about integrity and availability of the data and systems that we rely on in our everyday lives."

Huawei, pronounced 'who are way' was founded in 1987 by Ren, a former engineer with the People's Liberation Army, and originally made switching systems for telephone exchanges. While the mobile phone revolution of the 1990s saw most of Huawei's rivals enter into partnership arrangements with western technology companies, using hand-me-down technology, Huawei took a more controversial approach. It hired teams of expert researchers who would take apart the very latest device, and 'reverse engineer' the technology, putting the company at the forefront of the market.

This helped the company grow to become the world's largest supplier of telecoms equipment, and overtook apple last year as the world's second largest smartphone seller behind Samsung. Last year, the company sold 54.2 million phones in just three months, accounting for 15 per cent of all phones sold in the world.

But while its phones have proved popular with customers, its rise has also sparked concerns by governments around the world, with many citing fears about national security.

While Huawei is a private company, ostensibly unconnected to the Chinese authorities, the government in China passed legislation last year which obliged all citizens and organisations to assist the country's security services. This has led to concerns that the country's spy service could force the company to hand over sensitive data.

In April last year, the US banned government bodies from buying from any company deemed to be a security threat, in a move thought to be targeted at Huawei and its rival ZTE. The ban on ZTE, which had also faced action for exporting American technology to North Korea and Iran, was lifted in July after the company agreed to pay the US treasury a penalty of one billion dollars.

Australia's federal government also barred the two companies for supplying equipment to Australia's 5G network on national security grounds, while New Zealand's security services blocked domestic companies from buying Huawei mobile network equipment.

The story took a fresh twist last month when it emerged Vodafone discovered security failings in Huawei internet routers used by millions of people in Italy almost a decade ago. Vodafone and Huawei both confirmed the vulnerabilities were discovered in the Chinese routers. Both companies denied allegations in a report by the news organisation Bloomberg that the security lapses amounted to “hidden backdoors” that could be used to spy on millions of people’s internet browsing.

The problem for the Prime Minister is that Huawei's equipment is already widely used in the UK's existing networks for its 3G and 4G networks. If the Government imposed a total ban on the company, it would force all the major phone and internet providers to strip out vast amounts of kit, potentially putting the 5G programme back several years. BT has pledged to remove all Huawei equipment from its mobile phone network over the next two years following pressure from MI6. It is not yet clear whether this will also apply to its Openreach subsidiary, which provides fixed-line broadband.

As she is wont to do, Theresa May sought to tread a middle ground that would limit the company’s work to non-core parts of the 5G network. But the decision has done little to placate those in cabinet who fear that Huawei is a threat to British security.

The Prime Minister may reflect on an old Chinese proverb "Never do anything you want to remain a secret."