US Ambassador to Germany Richard Grenell wrote in a letter to German economic minister Peter Altmaier that such cooperation would have to be scaled back, The Wall Street Journal reported Monday.
Following reports that Huawei is suing the USA 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.
The US believes that allowing the Chinese company Huawei to construct and maintain 5G networks will give the Chinese government a backdoor into communications surveillance.
The letter, which was dated March 8, is the first time the USA has warned an ally that it faces recriminations for associating with Huawei.
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Germany's potential use of Huawei in its 5G rollout is a sticking point for the US.
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.
We are not sure if the German communications regulator Bundesnetzagentur (BNetzA) will yield to Washington's warning as the country's federal cybersecurity agency has already rolled out the country's 5G security requirements, the requirements are quite strict, but not a complete and specific restrict on Huawei.
The Chinese telecoms behemoth has strenuously denied the espionage allegations. The correspondence added that if Germany uses Huawei or any other form of Chinese equipment in its next-generation mobile network the US would not be able to maintain its current levels of security cooperation.
The year ended with the arrest of Huawei's chief financial officer in Canada at U.S. request, to the consternation of China.