Chinese tech giant Huawei has pledged $2 billion in an effort to alleviate a British security agency's concerns over its equipment and software, according to media reports.
The Financial Times reported Friday that Huawei executives met with senior officials from GCHQ's National Cyber Security Centre this week, where the company agreed to several terms that will overhaul its practices in the U.K. Both the FT and Reuters reported that it had committed $2 billion to address U.K. security demands.
Specifics around the terms of the agreement were not revealed in either of the reports. However, Huawei is said to have agreed to write a formal letter to the NCSC outlining its agreement to address the issues raised, according to the FT.
Questions have been raised over Huawei's involvement in Britain's future 5G networks. On Wednesday, U.K. telecommunications firm BT said it would exclude the Chinese firm from providing technology for its core 5G network. Huawei has already been banned from providing technology for 5G in the U.S., Australia and New Zealand.
A spokesperson for the NCSC told CNBC via email Friday: "As was made clear in July … the NCSC has concerns around a range of technical issues and has set out improvements the company must make."
"The U.K. government and British telecoms operators work with Huawei to manage cyber security risks while ensuring the U.K. can continue to benefit from new technology," they added.
Huawei did not respond to multiple requests for comment.
On Wednesday, Canada's Department of Justice said the country arrested Meng Wanzhou, the company's CFO in Vancouver, where she is facing extradition to the United States. The arrest is related to violations of U.S. sanctions against Iran, Canadian officials said during a court hearing Friday.
U.S. authorities have been probing Huawei, one of the world's largest makers of telecommunications network equipment, since at least 2016 for allegedly shipping U.S.-origin products to Iran and other countries in violation of U.S. export and sanctions laws, sources told Reuters in April.
- CNBC's Ryan Browne and Deirdre Bosa contributed to this report