Last week, Huawei sued the USA government for banning federal agencies from purchasing Huawei equipment - a restriction in the 2019 National Defense Authorization Act.
US Ambassador to Germany Richard Grenell sent a letter to the German government last week threatening to curtail German access to US intelligence if Berlin decides to issue contracts to Huawei, according to a US official familiar with the matter.
The letter, which was dated Friday and reviewed by The Wall Street Journal, marks the first known time the USA has explicitly warned an ally that refusing to ostracise Huawei could lessen security cooperation with Washington.
In Germany, the U.S. Embassy spokesman told Kakissis that the circumstances raise questions about the confidentiality of sensitive communications, implying information carried over Huawei's equipment could be at risk of being piped to Chinese intelligence agencies.
In his letter, Grenell said 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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In an interview with business daily Handelsblatt, Huawei's chief for West Europe, Vincent Pang, said the USA warning went too far.
The Chinese telecoms behemoth has strenuously denied the espionage allegations.
A spokesman for Altmaier said a letter had been received from the embassy, and the ministry would respond in a timely manner.
While the United States embassy in Berlin would not confirm that a message was sent, the German Federal Economics Ministry did tell the Frankfurter Allgemeine Zeitung (FAZ - auf deutsch) that the letter had been received and would be "answered promptly". The country says it is willing to allow Huawei or any other foreign telecommunications company to bid on 5G networks provided they satisfy basic security protocols.