US 'warns Germany a Huawei deal could hurt intelligence sharing'

US to Germany drop Huawei or face limit on shared intelligence data

Huawei recently filed a lawsuit against the U.S. government for labeling it a security risk and limiting its access to the American market.

The warning was outlined in a letter from US Ambassador to Germany Richard A. Grenell, according to a report from the WSJ.

Following reports that Huawei is suing the U.S. government, the Trump administration has informed the German government it will limit its intelligence sharing if it allows Huawei to build Germany's 5G infrastructure. Huawei and ZTE already face restrictions on the American domestic market, while U.S. officials are leaning on other nations to exclude China from the lucrative upgrade of wireless infrastructure to 5G standard. -German cooperation could only continue at its current level if Chinese firms were excluded from the construction of the network.

Europe's security agencies relied heavily on U.S. intelligence to stop terrorist attacks, the Journal noted.

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Washington considers Chinese companies to be a potential threat, presuming that any equipment and software provided by them could potentially be used by Beijing to spy on other nations. As CNBC reports, both the 2017 National Intelligence Law and the 2014 Counter-Espionage Law mandate that Chinese firms comply with state security efforts.

However, the Journal reported that a spokesman at the German Economic Ministry said the concerns were not new, and they had seen no evidence that they were true.

German minister Altmaier confirmed he had received the letter, but told AFP he could not comment on its contents, adding: "We will respond quickly". Germany recently announced all electronics purchased for its mobile networks will be required to pass testing by the Federal Office for Information Security (BSI), and network operators will be strongly encouraged to buy equipment from a variety of suppliers to prevent any single company from developing a monopoly.

Tensions have also run high over the detention of Huawei chief financial officer Meng Wanzhou, who is facing possible extradition to the US on allegations she committed financial fraud in the course of allegedly violating worldwide sanctions on Iran.

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