German Chancellor Angela Merkel told lawmakers on Wednesday that she was unaware of any pressure from China to include its tech juggernaut Huawei in Germany's 5G rollout.
Merkel's comment comes in response to a statement by China's envoy to Germany Ken Wu who said Beijing could take measures that could affect the German car industry if Huawei is barred from Germany's 5G rollout.
Following the statement, Merkel's government agreed to delay a decision on security rules for Germany's 5G network until next year in a bid to ramp up scrutiny of telecoms equipment suppliers.
The chancellor herself previously stated that she opposes excluding any company from contributing to the rollout of Germany's 5G network, but prioritises security in this matter as well.
Germany's decision on the provider for its 5G network comes amid pressure by the United States who is calling on Berlin as well as other European powers to bar Huawei from developing its national 5G infrastructure, citing security concerns.
Washington has been accusing Huawei of espionage and illegal surveillance practices - charges that the company repeatedly denied.