A decision on whether controversial Chinese firm Huawei should be excluded from the rollout of 5G mobile phone networks in the UK has been postponed.
Culture secretary Jeremy Wright said the government is “not yet in a position” to decide what involvement Huawei should have in the 5G network.
Mr Wright said the implication of the recent US ban on its companies from dealing with Huawei was not clear.
Until it was, he said the government would be “wrong” to make a decision.
“We will do so as soon as possible,” he told the House of Commons.
The US banned companies from selling components and technology to Huawei and 68 related companies on 15 May, citing national security concerns.
Mr Wright said the US decision “could have a potential impact on the future availability and reliability of Huawei’s products, together with other market impacts, and so are relevant considerations in determining Huawei’s involvement in the network”.
Last week, MPs said the government needed to make a decision on Huawei as “a matter of urgency”, warning continued delays were damaging international relations.
Huawei has repeatedly denied claims the use of its products presents security risks, and has said it is independent from the Chinese government.
Britain’s National Security Council, chaired by outgoing Prime Minister Theresa May, met to discuss the issue in April and a decision was made to block Huawei from all critical parts of the 5G network over security concerns, but still allow it restricted access to less sensitive parts.
The final decision on Huawei was then supposed to have been made public in the review of the telecoms supply chain led by the Department for Digital, Culture, Media and Sport, which was published on Monday.
The decision on 5G equipment vendors will now be made by the next prime minister.
Last month, China’s ambassador to the UK warned that excluding Huawei from Britain’s 5G network “sends a very bad signal”.
Speaking to BBC’s Newsnight, Liu Xiaoming said Chinese businesses planning to invest in Britain may be put off dealing with the UK if Huawei’s equipment is not used for the network.