The Ministry of Defence has denied reports that cameras on Royal Navy surveillance drones secretly sent data to China.
Late last night, The Telegraph reported how cameras on K3 Scout surveillance drones contained Chinese components which were secretly transmitting information to a device in the communist country.
This information could have included British personnel's faces, training and operations, which the MoD denies.
The drones are made by British defence contractor Kraken Technology Group - which sourced the cameras from a third party.
Kraken had been given assurances about the cameras' security.
But the devices were found to be sending so-called "heartbeat communications" to China.
An MoD spokesman said the transmissions had been found during a "routine cyber vulnerability assessment" of the K3 drones.
"A thorough investigation found no evidence of MoD data or systems being accessed, compromised or transmitted externally," the department insisted.
"Our assurance and testing processes are designed to identify and address potential vulnerabilities early, and we continue to undertake routine security activity across our systems and equipment."
Heartbeat communications are simple confirmations that the camera was online and functioning normally.
But the fact that that data made its way to China has sparked grave fears over the security of drone components amid broader warnings by MI5 over the Chinese threat.
It is also believed to have led to a confidence crisis in the K3s, which formed part of the British mission to secure freedom of navigation in the embattled Strait of Hormuz.
Western allies including the US use the same drones.
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Plans for the UK's participation in a Hormuz mission were carried out on the drones, a source told The Telegraph.
"This is major failure to check origins of components and we have lost confidence in the platform," they added.
In another twist, fears were also raised that the drones have been near "highly sensitive" meetings between senior special forces staff.
The cameras may have even stayed active when the drones themselves were switched off.
Shadow Security Minister Alicia Kearns said: "If we cannot say with confidence what is inside our own military equipment, we cannot say it is ours, or that we are sovereign.
"When cameras built on Chinese parts are found recording our special forces - their faces, training and operations - we should not be surprised, we should be furious that we still haven't woken up to the realities of the threat we face."
A Kraken Technology Group spokesman said: "We are aware that some third-party, NDAA-compliant cameras had a small number of components originating from outside the UK.
"After a full audit by both Kraken and the Royal Navy we are confident no sensitive information has ever been shared outside of intended channels and any potential vulnerabilities have been identified and closed."
A Ministry of Defence spokesman said: "A thorough investigation found no evidence of MoD data or systems being accessed, compromised or transmitted externally.
"Our assurance and testing processes are designed to identify and address potential vulnerabilities early, and we continue to undertake routine security activity across our systems and equipment."
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