Ministers have suggested that new U.S. sanctions against Huawei could force the company to rethink its role in the UK's 5G network.
In May, the Trump administration tightened sanctions against the technology giant for fear of close ties with the Chinese state.
Stricter rules for Huawei's ability to buy semiconductor chips from companies using US technology to manufacture them have prompted the UK's National Cyber Security Center (NCSC) to conduct a review to assess the potential impact on UK networks evaluate.
Digital Secretary Oliver Dowden told MPs the new review is needed to determine Huawei's "reliability" and viability for the future within the UK's infrastructure in the face of such constraints.
"Given that the U.S. government has imposed sanctions on Huawei because it focuses on 5G, we need to fully understand them and understand how this affects how much we can rely on Huawei devices in the system if it is subject to these restrictions on sanctions, ”he said.
Mr Dowden wants the competitive environment to become more diverse so that the UK is not dependent on a limited number of companies – currently only Huawei, Nokia and Siemens are leaders in 5G technology.
He added that the government was seeking to remove Huawei from the network "over time" – but declined to set a timeline for such a move.
An earlier review prior to the introduction of stricter sanctions found that Huawei can play a smaller role in the UK's 5G infrastructure.
However, the company was classified as a "high-risk provider", excluded from sensitive parts of the network, and was advised that it would be limited to no more than 35% of the network's non-core areas.
Defense Secretary Ben Wallace, who also attended the hearing, denied proposals that the US would bully Britain to take harsher measures against Huawei.
"It is not an American sanction against us, it is an American sanction against the use of American intellectual property (intellectual property) – not British intellectual property – that appears to make some of the Huawei devices inoperable. So the United States can completely sanction whoever they want, "he told the Defense Committee.