China Says It's 'puzzled' After Report Germany Might Ban Huawei From Parts Of 5G Mobile Network
- Germany is considering banning some components from Chinese companies including Huawei and ZTE from its 5G mobile network, Reuters reported, citing a government source.
- A spokesman for the Chinese embassy in Germany said that if the news is true, China is very surprised and very happy with Germany's hasty decision.
- Several governments, notably the United States, have accused Huawei of endangering national security.
- Huawei has repeatedly denied this claim.
© CNBC powered Huawei is back in the European spotlight after reports that Germany may ban some of the Chinese telecom giant's equipment from its 5G network.China's embassy in Germany said it was "surprised and very pleased" that Berlin plans to ban some equipment from Chinese companies Huawei and ZTE on its 5G telecommunications networks on national security grounds.
Germany is considering banning some Chinese company components from its mobile networks, Reuters reported on Tuesday, citing a government source.
Documents obtained by Reuters from the German Interior Ministry said supplies of critical components could be banned if a particular supplier is deemed to be directly or indirectly controlled by the government of another state.
If the rule goes into effect, it could mean removing equipment installed on networks and replacing it with other vendors, an Interior Ministry spokesman told Reuters.
Several governments, notably the United States, have accused Huawei of endangering national security. Washington has said Huawei has close ties to China's communist government and that the company's network equipment could be used to send information about American citizens to authorities in Beijing.
Huawei has repeatedly denied that it poses a threat to national security.
China's response
A spokesman for the Chinese embassy in Germany said on Tuesday evening that Huawei acted in accordance with the country's laws and regulations and responded to Germany's position.
"In recent years, countries and anti-China forces have continued to vilify Huawei through accusations, but there is no evidence that Huawei's equipment and components pose a security risk," the spokesperson said, according to Google's translation.
"If the news is true, the Chinese side is very surprised and very upset by the hasty decision taken by the relevant department of the German government, not based on facts."
An embassy spokesman said any ban on the use of Chinese equipment in telecommunications networks "violates economic laws and principles of fair competition".
A Huawei spokesperson told CNBC that the company has been involved in security in Germany and around the world for more than 20 years.
"Huawei believes that an objective and fact-based discussion on mitigating risks in cyberspace is necessary," the spokesperson said.
As a ZTE spokesperson said, "The products remain safe and no evidence to the contrary has been presented."
Germany followed by the United Kingdom and the United States
Germany's position on Huawei has been stagnant since the United States began fighting the telecom equipment giant under Donald Trump's administration.
Europe's largest economy is balancing trade ties with China, its largest trading partner, and geopolitical considerations.
In recent months, Germany has been trying to strengthen trade ties with China, with Chancellor Olaf Scholz visiting Chinese President Xi Jinping in November. But the US is under increasing pressure to take a tougher stance on technology with Beijing.
Any decision to block Huawei from 5G networks would be a major shift from 2019, when the country said it would not take such a step. Since then, Germany has stopped short of banning Huawei as the US mounts and other countries try to block the Chinese firm's equipment from accessing their networks.
"Under Angela Merkel's leadership, Germany has steadily reduced the risks associated with the country's close economic relationship with China. This was particularly evident during the 5G debate, when years of political uncertainty saw Huawei gain a larger market share. Share," Noah said. Barkin, managing director of the China practice at research firm Rhodium Group, told CNBC.
"The current government is creating a new vision for China aimed at reducing dependency and strengthening economic resilience."
5G is a key technology in the middle of a larger battle between the US and China for technological supremacy. 5G, the latest standard for mobile internet, is critical to supporting next-generation infrastructure such as self-driving cars, but also has potential military applications.
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In 2019, Huawei was blacklisted by the US Business List. It restricts US companies from exporting certain technologies to Huawei. In 2020, the US moved to cut Huawei from its main supply of chips needed for mobile phones. This affected the company's mobile business.
Washington tried to convince other governments to block Huawei. In 2020, Sweden banned Huawei and ZTE equipment from its 5G network.
In the same year, the UK government announced a ban on Huawei equipment on its 5G network and ordered service providers to remove the Chinese manufacturer's equipment from their infrastructure by 2027.
It is unclear whether Germany's rules will go that far. But if that were to happen, according to Birkin, it would be expensive and take a long time to implement.
"If the government decides to remove Chinese suppliers from the network, which is not yet clear, it will take the better part of the next decade," Barkin said.
