Speaking to BBC's Newsnight on Wednesday evening, Mr Liu said that a move to block the Chinese telecoms giant from the new technology could impact trade and investment with other Chinese companies.
"Because those decisions have been made by the USA relatively recently that means we have to take a step back and think carefully about them before we make our final decision", Digital Minister Jeremy Wright told reporters. The US doesn't want its European allies to adopt Huawei's 5G equipment, saying the gear could be used to spy for China.
Britain's National Security Council, chaired by Prime Minister Theresa May, had agreed in April to allow Huawei restricted access to non-core parts of the 5G network, but that decision has been put on hold following the US intervention.
The United States has severely limited Huawei's access to the U.S. market and US-made technology over the past two years amid fears that its equipment, especially that for the coming next-generation 5G wireless markets, could offer Chinese intelligence services a back door to USA communications. "But if you shut the door on Huawei you will send a very bad and negative message to other Chinese businesses".
A report from the Henry Jackson Society, a London-based neoconservative think tank, said that to allow the company access to Britain's next-generation mobile-phone network would be a detriment to security and alleged that Huawei is part of the "Chinese party-state apparatus".
Last week, China stepped up its counter-offensive, warning major United States tech companies that they could be cut off altogether from the Chinese market if they roll back their sales of sensitive products to Chinese companies like Huawei. She is expected to be out of office by the end of July and it will be left to her successor to bring the matter to a conclusion.