The United States on Monday warned Germany that sensitive communications could be compromised if "untrusted vendors" were used within its 5G telecom infrastructure, according to a Wall Street Journal report. Germany, as one of Washington's allies, took the note of warning from the U.S. government, however, believes that there is nothing to indicate that the Chinese government can use Huawei in espionage and economic sabotage.
The Wall Street Journal reports that US Ambassador to Germany Richard Grenell in the letter warned German officials that in the event of Huawei participating in the 5G network implementation, the intelligence sharing between Washington and Berlin would be impossible to maintain at the current level.
The rift between the tech giant and the Trump White House has escalated in recent weeks, with Huawei announcing last week that it would be suing the U.S. government for the effective ban of its handsets in the USA, describing the lack of due process as "unconstitutional".
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Germany reportedly relies on U.S. intelligence to combat terrorism, so the threat of decreased collaboration in this area carries significant weight.
On Monday DPA announced that the U.S. had threatened Berlin to reduce intelligence sharing if Chinese companies were allowed to participate in implementation of the next generation 5G network.
There are only a few companies in the world that can provide the necessary infrastructure for the roll out of 5G. "The Americans will assume that everything we share with Germany will end up with the Chinese", a senior US State Department official said, describing the American position to the WSJ.
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The US is trying to recruit Germany in its campaign against Huawei.
However, Germany's Federal Network Agency published tougher security guidelines for telecom providers, which require suppliers of 5G networks to be "trustworthy".
Grenell said in his letter that Chinese companies, under Chinese law, can be required to support China's security agencies and that inspections of Huawei software could not ensure there were no vulnerabilities, the newspaper said.
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Reportedly, Huawei has no plans to sue the Australian government, for now.