The United Kingdom government this week reversed a six-month-old decision and is now requiring all of Huawei’s equipment to be removed from its networks by 2027. The move, which will admittedly delay the rollout of 5G services in the country, follows a more tepid decision that allowed for a limited set of equipment from the China-based vendor to be used in domestic 5G networks.

U.K. Culture Secretary Oliver Dowden, during a speech in Parliament, said the country’s mobile network operators must halt purchases of Huawei equipment by the end of the year. The ban and resulting impacts of the decision will delay 5G buildouts up to three years and cost as much as $2.52 billion, he said.

The Trump administration, which has already effectively killed Huawei’s ambitions in the U.S. market through a series of legal and restrictive regulatory measures, applauded the decision as it maintains that Huawei poses a national security risk.

The U.K. government’s previous guidelines allowed for mobile network operators to use Huawei equipment in noncore parts of their infrastructure but capped that usage at 35% of the total construct. The revised decision was based on an emergency technical assessment of the National Cyber Security Centre following more restrictions imposed by the U.S. in May, according to the U.K. government. However, the agency had already earlier this year decreed that Huawei is a “high risk vendor” that poses “greater security and resilience risks to U.K. telecoms networks.”

UK Operators Cry Foul

The country’s largest operators, which began rolling out limited 5G networks last year with a mix of equipment from Nokia, Ericsson, and Huawei, are criticizing the latest guidelines, claiming it will cost billions of dollars to rip out and replace the Chinese vendor’s equipment and lead to 5G network delays.

Liu Xiaoming, the Chinese ambassador to the U.K., called the decision “disappointing and wrong,” adding that it calls into question “whether the U.K. can provide an open, fair, and non-discriminatory business environment for companies from other countries.”

Other Chinese businesses will closely follow how Huawei has been treated by the U.K., he said in a televised interview with China Global Television Network.

The new U.K. ban could also stunt Huawei’s increased investments in the country, including a recently approved chip research and development center the vendor plans to build near Cambridge. Huawei pledged to spend $1.26 billion on the first phase of that development. The company also boosted its 2020 investment on research and development to $20 billion.

Huawei Posts Resilient Growth Amid Widening Bans

As with all things Huawei of late, the U.K. government’s decision follows a series of ups and downs for the vendor. Huawei earlier this week reported a surprising 13.1% year-over-year increase in revenues to $65 billion through the first half of 2020. It reported a relatively mild 1.4% year-over-year increase in revenue during the first quarter of the year. The company’s annual growth in sales during 2019 reached 39%.

While Huawei’s executives increasingly admit that expanding trade bans have damaged the company’s outlook, the vendor has proven to be resilient amid a series of moves that aim to define the company as an agent for the Chinese government.

“Fixing the holes has been our focus over the past year,” Rotating Chairman Guo Ping said during Huawei’s analyst summit in May. “Our business will inevitably be impacted. In spite of that, as the challenges over the past year have helped us to develop a thicker skin, we are confident about finding solutions soon. Actually, we still haven’t figured it out.”

At the time, Guo said Huawei, the world’s largest telecommunications vendor, had deployed more than 1,5000 networks in at least 170 countries and regions.