China has issued a stern warning to Germany, stating that there would be consequences if it would exclude Huawei Technologies from being a legitimate supplier to the country's 5G wireless network development. China's ambassador to Germany hinted that the consequences could negatively affect the millions of German vehicles sold in China each year.

Chinese ambassador to Germany, Wu Ken, mentioned on Saturday that the Chinese government will not sit idly by if Germany would choose to take actions that would severely affect Huawei's ability to do business with its partners in the country. Wu mentioned as a reminder to Germany that it had sold more than 28 million cars in China last year. The statement was a subtle warning that a dispute would likely not end well for the country's automotive industry.

The comment made by the ambassador at the event in Handelsblatt was in response to new measures being considered by German lawmakers. Lawmakers have been trying to put pressure on German Chancellor Angela Merkel's administration, challenging her lenient policies towards Chinese businesses.  A bill was also recently submitted for approval, one that would essentially impose a ban on "untrustworthy" 5G equipment and services vendors.

The new bill did not explicitly mention Huawei or any other Chinese companies, but some have argued that it is tailor-made to target Chinese companies that are aiming to supply Germany with 5G equipment and services. The bill was submitted in the middle of a heated debate in Germany regarding the potential use of telecommunications equipment for espionage and sabotage.

Germany's Economy Minister Peter Altimaier mentioned on Sunday that he was against any kind of laws that single out companies. The minister warned that the country should not turn against individual companies but should instead focus on ensuring that the components and equipment used for its 5G development meet the highest standard of quality and security.

Germany continues to be one of the few European countries that have not heeded the United States' call to outright ban Chinese companies from supplying 5G equipment and services. The US is still actively trying to convince its allies to ban Chinese firms such as Huawei, alleging that these companies are being used by the Chinese government for nefarious purposes.

Huawei has repeatedly denied the US' accusations, stating that its equipment is fully secure and is not being used for espionage or sabotage. Earlier this month, Huawei had filed a lawsuit against the US Federal Communications Commission for limiting it from being a supplier using the country's telecom infrastructure development fund. The suit was the company's latest attempt to fight the US' imposed sanctions and restrictions against it.