In the latest blow to Huawei, any EU country that uses Huawei or any Chinese technology when building critical infrastructure will face US sanctions, according to the US envoy.

Speaking in Brussels, Ambassador Gordon Sondland, Trump's envoy, said that the Trump administration is trying to enforce a blanket ban on Chinese companies deploying 5G technology in all nations which are allied with the US.

"There are no compelling reasons that I can see to do business with the Chinese, so long as they have the structure in place to reach in and manipulate or spy on their customers," said Ambassador Sondland. "Those who are charging ahead blindly and embracing the Chinese technology without regard to these concerns may find themselves in a disadvantage in dealing with us."

He added that European countries should use Finnish or other Scandinavian companies to deliver 5G tech, despite being more expensive. Nokia and Ericcson are two of the leading companies from the region in this sector.

Sondland cited a Chinese law which allegedly compels private companies to share any and all information they have with the Chinese government "on any intelligence matters in secret and without refusal" to justify the announcement.

Failure to abide by the demands of the US will lead to consequences whereby the US will have to be "more careful in sharing information, in transacting business", and a "host of things" Sondland said.