China’s ambassador to Denmark threatened to scupper a trade deal with the Faroe Islands if Huawei was not given a 5G contract in the region, according to Danish newspaper Berlingske.

The alleged threat by ambassador Feng Tie, made to Faroe Islands politicians including leader Bárður Nielsen, heightened concerns about the Chinese communications firm’s links with the ruling Chinese Communist Party (CCP) as it seeks European expansion.

The US, having sanctioned Huawei due to concerns about espionage and security, is attempting to convince allies to follow suit. The Faroe Islands, which have a population of around 50,000, is a self-governing autonomous region of Denmark.

On 11 November Mr Feng allegedly told Faroe Islands government figures that China would not enter a free trade deal with them unless Huawei was given a 5G contract by Føroya Tele, a Faroe Islands telecoms operator. The threat was reported after Faroe Islands politicians were recorded by the Kringvarp Føroya TV station on 15 November, discussing the ambassador’s warning.

Mr Nielsen reportedly said that his government would not interfere in the awarding of the contract. A Faroe Islands judge granted an injunction against Kringvarp Føroya reporting the ambassador's alleged threat, saying it could compromise relations between the Danish Commonwealth and Beijing, before Berlingke revealed it.