German Chancellor Angela Merkel intends to conclude no-spying deal with China so that Germany does not have to exclude Huawei on principle from building a 5G network in Germany, Straits Time reported.

"Merkel's economic adviser Lars-Hendrik Roller was recently in China to negotiate about the agreement," WirtschaftsWoche quoted security sources.

Huawei is facing intense scrutiny in the West amid its relationship with the China’s government and allegations of enabling state espionage, which it denies.