European diplomats are hardening their stance on Chinese technology companies amid mounting concerns over cyber security.

The move comes ahead of EU auctions for the latest generation of 5G wireless technology where Chinese companies are hoping to win major contracts.

“A number of like-minded countries are increasingly concerned about China’s behaviour in this sphere,” a Western diplomat told the Financial Times.

The Western diplomat added: “EU countries, including Spain, Italy and Finland, held 5G auctions in 2018, with a clutch of others scheduled for 2019. The sales can raise billions of euros for government. We are urging everyone to avoid making any hasty moves they might regret later.”

EU members including Germany, Spain, Belgium and Austria are all considering 5G auctions in 2019.

But relations between Europe and China have become strained in recent months over cyber security concerns in telecoms networks.

The US has urged its allies to stop using equipment from Chinese equipment providers such as Huawei, which its security services have accused of posing a security risk.

In December, two Canadian citizens were arrested in China, thought to be in retaliation for the arrest of the chief financial officer of Huawei, one of China's leading technology companies, over alleged breaches of US sanctions.