Visitors pass in front of the Huawei's stand on the first day of the Mobile World Congress in Barcelonaon on February 27, 2017 in Barcelona. Lluis Gene | AFP | Getty Images

Germany is not ready to exclude Huawei from its 5G network and may amend its laws so that potentially untrustworthy manufacturers can still provide equipment, its interior ministry told CNBC Tuesday. In an emailed statement, a spokesperson for the Federal Interior Ministry — known as the BMI — said it was looking to adapt telecom networks to prepare for "new potential threats." "A direct exclusion of a particular 5G manufacturer is currently not legally possible and not planned," he said, according to a CNBC translation of the statement. "For the BMI, the focus is on adapting the necessary security requirements so that the security of these networks will be guaranteed even if there are potentially untrustworthy manufacturers on the market." The spokesperson added that necessary security requirements would be added to Germany's Telecommunications Act. Concrete adjustments are being discussed between the relevant federal ministries, he said, but no changes had been finalized.

Allowing Huawei to participate in its 5G network would come as a blow to the U.S., which has been working to persuade its allies to shut the Chinese telecoms firm out of their domestic infrastructure. The company has been blocked from selling equipment to the U.S. for many years, and President Donald Trump is reportedly expected to ban all Chinese telecoms equipment from U.S. networks. Other countries, including Australia, New Zealand and Japan, have also excluded Huawei from supplying components for 5G networks, citing national security concerns. However, those bans could be set to topple. On Monday, the Financial Times reported that Britain's intelligence services had concluded risks posed by Huawei 5G equipment could be mitigated. Meanwhile, New Zealand's Prime Minister Jacinda Ardern told broadcaster TVNZ on Monday that Huawei could be included in the nation's 5G network if it could mitigate security concerns raised by the government. Earlier on Tuesday, the Wall Street Journal reported that Germany was leaning toward including Huawei in its 5G network, citing government sources. German Economy Minister Peter Altmaier reaffirmed at a press conference on Tuesday that the government was still working on regulation around 5G security measures, adding that no decisions had been made.