China's ZTE deemed a 'national security risk' to UK

Telecommunication companies told not to deal with Chinese manufacturer, while US imposes fresh sanctions for illegal sale of sensitive technology

Britain's cyber-security watchdog has warned telecommunications companies against dealing with the Chinese manufacturer ZTE, citing "potential risks" to national security.

The US commerce department has imposed a seven-year-ban on companies selling products and services to ZTE - which makes mobile phones and network equipment - alleging it failed to crack down on personnel who sold sensitive US technology to Iran and North Korea. ZTE halted trading of its shares in Hong Kong and Shenzhen on Tuesday following the announcement of the US ban, while Beijing warned it would "safeguard" its companies if necessary.