The Dutch security service advised the government Tuesday not to use technology from countries with active cyber-hacking campaigns against the Netherlands, such as China and Russia.
The recommendation came as the Dutch government is weighing options for a new 5G telecommunications network in the coming years and seeks to replace its domestic emergency services network, known as C2000.
The AIVD security agency flagged Chinese and Russian attempts at digital espionage as a major security risk.
"It is undesirable for the Netherlands to exchange sensitive information or for vital processes to depend on the hardware or software of companies from countries running active cyber programmes against Dutch interests," the AIVD said in its annual report.
Prime Minister Mark Rutte has refused to rule out doing business with Chinese technology companies, even as key allies the United States and Australia restricted Huawei Technologies from accessing its next-generation mobile networks on national security grounds.
Washington has said that Huawei is at the beck and call of the Chinese state, warning that its network equipment may contain "back doors" that could open them up to cyberespionage.
Huawei says such concerns are unfounded.
