United States warns Germany a Huawei deal could hurt intelligence sharing

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"This could in the future jeopardize nimble cooperation and some sharing of information".

The US and several other Western nations, fearful of the security risks posed by the company closely tied to the Chinese government, have shut Huawei out of tenders for the development of the newest 5G infrastructure.

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

Perhaps anticipating China's complaint that the Trump administration is cracking down on Chinese electronics to drive them off the market and create business opportunities for American firms, Grenell advised the Germans to hire Ericsson Communications of Sweden, Nokia of Finland, or Samsung of South Korea to build its 5G network.

The battle with Huawei is one of many conflicts in Washington's disputes with China, but it is also exacerbating tensions in US-German ties that are strained over the Nord Stream 2 gas pipeline, the 2015 Iran nuclear deal and trade.

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The participation of Chinese telecommunications equipment producer Huawei in the development of the German telecommunications sector will be discussed with European Union and United States partners, German Chancellor Angela Merkel has stated. As CNBC reports, both the 2017 National Intelligence Law and the 2014 Counter-Espionage Law mandate that Chinese firms comply with state security efforts.

The German Economy Ministry confirmed that the letter had been received.

Germany's Ministry of Economics confirmed it had received a letter from the USA and that it would soon respond.

Last week, Germany said it didn't want to ban Huawei from building its 5G network, noting that it'd tighten security around all vendors instead, Reuters reported.

The year ended with the arrest of Huawei's chief financial officer in Canada at USA request, to the consternation of China.

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