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Excluding China’s Huawei from participating in the construction of Germany’s 5G next-generation mobile network could hurt Europe’s largest economy, Interior Minister Horst Seehofer said on Wednesday.

Seehofer, a Bavarian conservative, urged a dialogue with China and a technical solution to concerns about security.

He warned against excluding Huawei, adding of such a scenario: “Then I fear that would leave a mark on economic development.”

On Monday, the Wall Street Journal reported that the United States had told Germany it would share less intelligence with its security agencies if the country’s wireless network uses China’s Huawei Technologies Co to upgrade to 5G.

Asked about that warning on Tuesday, Chancellor Angela Merkel said Germany would define its own security standards for a new 5G mobile network.

Seehofer welcomed Merkel’s approach, praising her for reacting with a “certain serenity”.

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