The partnership between Huawei and BT (News - Alert) might mean good news for the companies, but the U.K. government is a little worried. In fact, the Intelligence and Security Committee’s (ISC) latest report has found some concerns about the two.

The report is titled “Foreign Involvement in the Critical National Infrastructure,” but it mainly looks at BT and Huawei (News - Alert). The two companies have worked together for 10 years, to varying degrees of partnership. Huawei helped BT upgrade its network in 2003 when it supplied equipment such as routers to the company.

Yet the ISC is concerned about Huawei’s connection to the Chinese state, its unclear finances, and its lack of transparency, in spite of a recently collapsed PR campaign designed to improve such. Around 20 percent of cyber attacks in the U.K. tend to be state-sponsored, so the ISC’s concern about state connections isn’t unwarranted.

However, Huawei seems willing to defend itself, stating that it would like to work with the government to help “reduce the risk of cyber security” and prove itself. Huawei has been unable to make deals similar to those with BT in the United States, due to security concerns like these, so losing BT would be a harsh blow to the company.

BT is not being held at fault for any risks Huawei presents, as the company has made sure to remain diligent in its security measures and management. It claims that security is its first and foremost concern, but it stands by its partnership with Huawei.

“The Security Service had already told us in early 2008 that, theoretically, the Chinese State may be able to exploit any vulnerabilities in Huawei’s equipment in order to gain some access to the BT network, which would provide them with an attractive espionage opportunity,” claims the report.

BT did, however, note that “there will always be a risk in any telecommunications system,” so it does not seem to be solely suspicious of Huawei.

Does the ISC have legitimate concerns, or is this a witch-hunt? There is certainly reason to be concerned about security, but the same can be said for just about anything these days. BT has made sure to keep its systems secure, so surely it would remain equally cautious with Huawei’s. There may be nothing to fear, but it never hurts to be safe and take a second look.