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Huawei is almost entirely answerable to Chinese state spies, according to a former Government security adviser - despite a minister's claim that the tech firm is a 'private company'.
The report, written by Peter Varnish OBE for the Henry Jackson Society, says that Huawei is nearly 99% owned by a trade union, which in Chinese law are ultimately controlled by the Communist Party.
Result - Think - Tank - Huawei - Behalf
As a result, the think tank concludes that it is 'high to certain that Huawei acts on behalf of China's intelligence organs'.
The report, published in The Sunday Times, complicates claims by Cabinet Office minister David Lidington about Huawei's independence from the Chinese state earlier this week.
Huawei - Firm - Company - MPs - Answer
'Legally speaking, Huawei is a private firm, not a government-owned company,' he told MPs in answer to a question by Julian Lewis, chair of the defence committee.
The firm is at the centre of a heated debate after details emerged of a National Security Council (NSC) meeting when Theresa May was said to have given the green light for Huawei to help build the UK's 5G communications network.
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The row boiled over this week, with a group of Conservative MPs writing to culture minister Jeremy Wright voicing their concerns.
A letter from Bob Seely and five fellow Tories states: 'Having China anywhere near our communications systems poses structural risks about the level of Chinese influence in our society.
Law - Firms - Services
'Chinese law demands that Chinese firms work with the Chinese secret services.'
Mr Seely was a co-author of the Henry Jackson Society report alongside Mr Varnish and Dr John Hemmings, its director of Asia studies.
Huawei - % - Huawei - Investment - Holding
It found that Huawei is 98.86% owned by the Huawei Investment and Holding Trade Union Committee, which is ultimately answerable to the All-China Federation of Trade Unions.
This was described by the report as a 'core report of the Chinese...
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