Secretary of State Mike Pompeo told CNBC on Thursday that Huawei does indeed work with the Chinese government, despite denials by the China-based telecom giant.

"For them to say that they don't work with the Chinese government is false," Pompeo said. "The Huawai CEO on that, at least, isn't telling the American people the truth."

"If you're a state-directed business and you take on subsidies direct from the Chinese government, there's no doubt you can make real hay," he said on "Squawk Box." "I think the world wants systems they can trust."

Huawei, a leader in 5G technology, has been trying to win contracts around the world, including Britain and Germany, to build the network that will make the internet exponentially faster.

Pompeo has been critical of Chinese technology companies in the past and met with British leaders earlier this month to discuss securing U.S. intelligence against Huawei.

The secretary of State told CNBC he's been "explaining the risks" about national security as he travels around the world to meet with government leaders.