Huawei 5G kit must be removed from UK by 2027
The UK's mobile providers are being banned from buying new Huawei 5G equipment after 31 December, and they must also remove all the Chinese firm's 5G kit from their networks by 2027.
Digital Secretary Oliver Dowden told the House of Commons of the decision.
It follows sanctions imposed by Washington, which claims the firm poses a national security threat - something Huawei denies.
Mr Dowden said the move would delay the country's 5G rollout by a year.
"This has not been an easy decision, but it is the right one for the UK telecoms networks, for our national security and our economy, both now and indeed in the long run," he said.
Because the US sanctions only affect future equipment, the government does not believe there is a security justification for removing 2G, 3G and 4G equipment supplied by Huawei.
Huawei said the move was: "bad news for anyone in the UK with a mobile phone" and threatened to "move Britain into the digital slow lane, push up bills and deepen the digital divide".
New restrictions are also being applied to use of the company's broadband kit.
The government wants operators to "transition away" from purchasing new Huawei equipment for use in the full-fibre network.
Mr Dowden said he expected this to happen within two years.
He explained that additional time was being provided for broadband to avoid the UK becoming dependent on Nokia as the single supplier of some equipment.