An attendee uses a mobile phone while standing in front of the Huawei Technologies Co. booth at the Mobile World Congress Shanghai in Shanghai, China, on Thursday, June 28, 2018. The exhibition runs through June 29. Qilai Shen | Bloomberg | Getty Images

But its not just Germany that is defying the U.S. Italy's government has said that it won't ban Huawei from its telecommunications industry, saying there is no proof of any security threat. And in the United Kingdom, intelligence officials said that any risks posed by Huawei can be mitigated, according to an FT report in February. Even individual carriers have expressed their concern over excluding Huawei from the 5G rollout. U.K.-headquartered carrier Vodafone said banning Huawei could cost it millions of pounds and slow the rollout of 5G. Experts say that while the American rollout of 5G would not be affected by a Huawei ban, Europe could suffer. Nikhil Batra, senior telecommunications research manager at IDC said European carriers' businesses have struggled compared to those in the U.S., so they want the cheapest possible deal for 5G equipment — something that Huawei can provide. "When you look at the industry as small as network equipment providers, excluding Huawei will have a big impact on the industry. If I am going from three major vendors to two major vendors, competition decreases, prices will increase as a result. A lot of countries, including specific telcos, are looking at Huawei as a better-cost option," Batra told CNBC on Thursday.

The two other major players for Europe are Nokia and Ericsson. "Traditionally, Huawei has been playing a lot on the cost in terms of being competitive versus the other two major players," Batra added. European countries, Batra said, have not seen hard evidence regarding the allegations made by the U.S. and that is one reason why they are not following America's lead. Critically, the U.S. argument is that Huawei's technology could allow for spying — not specifically that the company has already performed intelligence gathering for Beijing. And it's not just European countries butting heads with the U.S. Thailand, a U.S. ally in Asia, launched a 5G test bed with Huawei in February. India, meanwhile, is looking for a way to exclude Huawei from some parts of its 5G infrastructure, but it is not seeking an entire ban, according to a report by the Nikkei Asian Review earlier this month.