The United Kingdom decided last month that it would allow equipment made by Huawei to be used for building its next-generation 5G networks. The European Union too followed the United Kingdom's lead and announced that it would not ban Huawei equipment from its 5G networks.

Despite cajoling attempts by U.S. Secretary of State Mike Pompeo and Defense Secretary Mark T. Esper at a global security conference held in Munich last weekend, it now looks like Germany too could allow the use of Huawei equipment in its 5G networks.

Speaking to reporters in Munich on Saturday, Defense Secretary Mark T. Esper said:

If countries choose to go the Huawei route, it could well jeopardize all the information sharing and intelligence sharing we have been talking about, and that could undermine the alliance, or at least our relationship with that country.

Since countries in Europe aren't paying any heed to appeals from the U.S. to keep Huawei out of their 5G networks, the Trump administration is now considering other options to turn up the pressure on the Chinese company.

As reported by Reuters earlier today, the U.S. is working on a proposal that could cut Huawei off from access to chips that are manufactured using American technology. It is also expected to soon close a legal loophole that has allowed U.S. firms to get around the trade ban on Huawei.

The Trump administration could soon block all chip supplies to Huawei