The UK has decided to let China's Huawei continue to be used in its 5G networks but with restrictions, including banning its equipment in the network's "sensitive parts", like the core, and capping the presence of its kit in the network's periphery to 35 per cent, reports said on Tuesday.
Huawei will also be excluded from areas near military bases and nuclear sites, the BBC reported.
The decision by the Boris Johnson government came despite pressure from the US and a section of Conservative MPs on grounds of national security. While a Trump administration official said the US "is disappointed" with the decision, Republican and former Speaker of the US House of Representatives Newt Gingrich, described it as a "strategic defeat" for his country.
On the other hand, China had warned Britain that there could be "substantial" repercussions to other trade and investment plans had the company been banned outright.
Huawei welcomed the decision.
"Huawei is reassured by the UK government's confirmation that we can continue working with our customers to keep the 5G rollout on track.
"It gives the UK access to world-leading technology and ensures a competitive market," the firm's UK chief Victor Zhang said in a statement.
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