Uncertainty surrounding the Chinese telecoms supplier Huawei could threaten investment in the UK’s mobile phone networks, an industry body has warned.

Mobile UK, which represents Vodafone, Three, EE and O 2 , claims speculation over potential restrictions on Huawei may frustrate the introduction of new 5G technology. America is urging its western allies to ban the company amid claims that it could pose a threat to national security by enabling Chinese spying.

Meng Wanzhou, Huawei’s chief financial officer, has been detained in Canada and is facing fraud charges in America over alleged violation of sanctions against Iran. Canada approved extradition proceedings against her yesterday.

Ministers are expected to reveal their position on Huawei in the spring, once they finish a review of the UK’s telecoms