Britain's national security adviser is to clear Huawei Technologies of leaving its equipment open to Chinese spying, while recommending that British agencies look at how they can tighten procedures.
Kim Darroch was assigned to carry out the review in July, after the UK Parliament's Intelligence and Security Committee expressed concern about a lack of clarity over links between the Chinese telecommunications company and the Chinese government.
His report finds no evidence of wrongdoing by the company, according to two government officials familiar with its contents. A British newspaper also reported yesterday that the report was positive for Huawei.
Darroch is currently accompanying Prime Minster David Cameron on a trade mission to China. Yesterday, Science Minister David Willetts visited the company's research centre in Shanghai.
Scott Sykes, Huawei's Shenzhen, China-based spokesman, declined to comment.
Huawei announced in 2012 that it planned to invest US$2 billion in the United Kingdom over five years and nearly double its workforce to more than 1,500 from 800.
Chinese Foreign Ministry spokesman Hong Lei told reporters yesterday that Huawei and other Chinese companies "observe the relevant nation's law and seek mutual benefits with [the] relevant nation".
China hopes "the relevant nation can treat the overseas operation activities of Chinese companies like Huawei objectively and fairly and not make it a security and political issue", the official added.
During his visit, Cameron asked China's leadership to open formal talks on cybersecurity. Premier Li Keqiang agreed that the subject needed to be discussed when the two leaders met in Beijing on Monday, a UK official said.
"A proper cyber dialogue between countries is necessary, and I have raised this with the Chinese leadership that we need to properly discuss these issues," Cameron told reporters in Shanghai yesterday.