UK’s mobile providers are been banned from buying new Huawei 5G equipment after 31 December.
Similarly, they must also remove all the Chinese firm’s 5G kit from their networks by 2027.
Digital Secretary Oliver Dowden informed the House of Commons of the decision.
Mr Dowden said the move would delay the country’s 5G rollout by a year.
He said the decision would protect UK telecom networks, preserve national security and economy, both now and in the future.
Other political considerations are likely to have prompted UK’s decision, this include the desire to strike a trade deal with the US, growing tensions with China over its handling of the coronavirus outbreak and its treatment of Hong Kong.
In the Meantime, Huawei says it employs about 1,600 people in the UK and claims to be one of Britain’s largest sources of investment from China.