Plans are due to be drawn up to phase out China's input in British infrastructure to zero by 2023, according to the report released late Friday.
The UK's Prime Minister Boris Johnson has said that the nation is seeking to end reliance on some China imports. Huawei did not comment so far on the development.
Beijing has been facing mounting worldwide criticism over its handling of the coronavirus outbreak, which began in China before spreading to the rest of the world. Yesterday, following Conservative MP Richard Drax 's questions to urge Johnson to copy France's review of defence supply chains because of concerns China is buying up companies at risk of going bust during the pandemic, Johnson told the Commons: "Drax is absolutely right to be concerned about investment, to be concerned about the buying up of United Kingdom technology by countries that. may have ulterior motives". "Officials have been instructed to come up with a plan to reduce Huawei's involvement as quickly as possible", a source was quoted by the Telegraph as saying.
Conservative PMs have also been urging the PM not to allow Huawei to build Britain's 5G networks.
Beijing has repeatedly denied the accusations.
Britain decided in January to allow Huawei into what the government said were non-sensitive parts of the network and limit its involvement at 35 per cent.
The US has previously raised security concerns about the use of Huawei equipment, warning allies that use of it in their networks means they face being cut off from intelligence feeds.