An unnamed State Department official told the paper that the USA won't cut Germany out of its intelligence sharing network altogether, but it wouldn't be able to share with the same transparency for fear of the information reaching China.
The US has underscored to Germany its threat to limit intelligence sharing with countries that use Chinese tech giant Huawei to build their 5G communications networks.
Last week, Germany said it didn't want to ban Huawei from building its 5G network, noting that it'd tighten security around all vendors instead, Reuters reported.
"To the extent there are untrusted vendors in the networks of an ally, that could raise future questions about the integrity and confidentiality of sensitive communications within that country, as well as between that country and its allies", a United States embassy spokesman said.
The US, as well as some of its allies, earlier barred the Chinese hi-tech company from their next-generation networks, accusing Huawei of espionage on behalf of the Chinese government.
USA withdrawing all remaining diplomatic personnel from Venezuela - State Department
Guaido is backed by some 50 countries, while Maduro maintains support from countries such as China, Russia and Cuba. Embassy in Caracas , Venezuela in January.
"The Federal Minister for Economic Affairs and Energy has indeed received a letter; there is no comment on its content from their side".
The US is trying to recruit Germany in its campaign against Huawei.
For its part, Germany says that its implementing strict security measures to ensure data integrity such as inspecting the source code and closely monitoring the contractors who will run the 5G networks.
Washington claims that Huawei - the world's biggest telecoms equipment supplier - has been stealing commercial information and spying on behalf of the Chinese government.
No evidence of a direct threat to security posed by Huawei was offered in either report of Grenell's letter. Germany also concluded through an internal investigation that Huawei would not be able to intercept data using the equipment. The arrest, which occurred amid the ongoing China-US trade row, was denounced by both Huawei and Beijing; China's authorities have demanded that Canada immediately release the Chinese national.
Also on rt.com United States advises Italy to steer clear of China's new Silk Road... because it's a National Security issue?