Nice story but poor reporting
"at Cabinet level by senior intelligence officials ", remember as a journalist, you should prefer facts and avoid rumour. I suspect that your story stems from a number of vendors who have briefed against Huwaei who were upset that they won a nice chunk of CN21. If you ask around, you will find that in certain places, particularly the far east, Huwaei offer products at a fraction over costs into what are perceived as strategic accounts. At a margin that few western vendors can compete at.
Companies like Huwaei benefit from cheap credit from state sponsored banks, lenient labour laws with low wages with far better access to a growing internal market than western rivals. The red hearing of national security makes a nice headline but the substance of this story is weak and below the normal standard set by el Reg. Exclusive, yes - good reporting, definitely not!
Although it was well written :)