China’s embassy in Germany says it is “disturbed and strongly frustrated” by reports that Berlin plans to ban Chinese firm Huawei and some equipment from Huawei. Stated. ZTE For national security reasons, in 5G communication networks.
on tuesday, Reuters citing government sources, reported that Germany is considering banning certain components from Chinese companies in its mobile networks.
Certain suppliers may be barred from providing critical components if they are deemed to be directly or indirectly controlled by another country’s government, according to German Interior Ministry documents obtained by Reuters.
An interior ministry spokeswoman told Reuters that the rules, if implemented, could mean removing equipment already installed in networks and replacing them with other suppliers.
Huawei has been accused of posing a national security threat by many governments, especially the United States. Washington alleges that Huawei has close ties to the Chinese Communist Party government and that the company’s network equipment could be used to transmit data about US citizens to authorities in Beijing.
Huawei has repeatedly denied posing a national security threat.
China’s response
A spokesperson for the Chinese embassy in Germany said late Tuesday that Huawei was operating in compliance with domestic laws and regulations and hit back at Germany’s stance, as reported by Reuters.
“In recent years, countries and anti-China forces have continued to attempt to smear Huawei with hoaxed accusations, but there is absolutely no evidence that Huawei equipment or components pose a security risk,” the statement said. a representative said. .
“If the reports are true, the Chinese side is very embarrassed and strongly dissatisfied with the hasty decision of the German government-related departments, which has no factual basis.”
An embassy spokesperson argued that the ban on Chinese equipment in telecommunications networks “violates economic law and the principle of fair competition.”
A Huawei spokesperson told CNBC the company has a “strong security record” in Germany and globally for more than 20 years.
“Huawei believes in the need for an objective and fact-based discussion of how cyberspace risks can be mitigated,” the spokesperson said.
“The product remains safe and no evidence has been produced to suggest otherwise,” a ZTE spokesperson said.
Germany follows UK and US
Germany’s position on Huawei has been in limbo since the United States under Donald Trump began cracking down on the telecom giant.
China, Europe’s largest economy, has sought to find a balance between considering geopolitical considerations while maintaining business ties with its largest trading partner.
Germany has been trying to strengthen its commercial ties with China in recent months, with Chancellor Olaf Scholz visiting China’s President Xi Jinping in November. But there is increasing pressure from the United States to take a tougher stance on Beijing on technology.
The decision to block Huawei from its 5G network represents a big change from 2019. I said no such move. Since then, Germany has sat on the fence over Huawei’s ban as US pressure intensifies and other countries block equipment from Chinese companies within their networks.
“Under Angela Merkel, Germany has consistently downplayed the risks arising from its close economic ties with China, especially in the debate over 5G. Huawei has a bigger market share than ever before,” said Noah Birkin. The China operations editor for research firm Rhodium Group told CNBC.
“The current government is in the process of developing a new approach to China focused on reducing dependency and enhancing economic resilience.”
5G is a key technology that has been thrust into the midst of the broader battle between the US and China for technological supremacy. 5G, the latest standard for mobile internet, is seen as essential to support next-generation infrastructure such as self-driving cars and even has potential military applications.
In 2019, Huawei was put on a US blacklist called the Entity List. This restricted US companies from exporting certain technologies to Huawei. In 2020, the U.S. moved to cut off Huawei from supplying key chips needed for smartphones. This hit the company’s mobile business hard.
Washington has tried to persuade other governments to block Huawei. In 2020, Sweden banned Huawei and ZTE equipment on her 5G network.
That same year, the UK government also announced a ban on Huawei equipment from 5G networks, telling operators that they must remove equipment from Chinese vendors from their infrastructure by 2027.
It’s unclear if the German rule will last that long. But if so, it would be an expensive endeavor that would take a long time to complete, according to Birkin.
“If the government decides to phase out Chinese suppliers from its network, it will take the better part of the next decade,” Birkin said.