The Times reported that, according to the US intelligence agency, Huawei was being funded by the Chinese People’s Liberation Army, the National Security Commission, and a third branch of the Chinese state intelligence network.
The newspaper also said, citing a US intelligence source, that China's Ministry of State Security had endorsed the state sponsorship of the company.
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The report comes after earlier this month US Secretary of State Mike Pompeo warned that Washington may scrap cooperation with some "important strategic partners" who use Huawei Technologies Co Ltd systems.
Last year, Australia, Japan, New Zealand and the United States banned the Chinese telecommunications giant from participating in government contracts, citing security reasons, while several other countries said they were also worried about Huawei's activities.