Germany Could Ban China's Huawei, ZTE From Parts Of 5G Networks Source
© Thomson Reuters FILE PHOTO: A worker uses a Huawei P40 smartphone at the IFA Consumer Technology Show in Berlin.By Sarah Marsh and Andreas Rinke
BERLIN (Reuters) - Germany is considering banning some components of Chinese companies Huawei and ZTE from its telecommunications networks, a government source said, to allay security concerns.
A Home Office spokeswoman confirmed on Tuesday that the federal government was conducting a general review of telecommunications technology suppliers, but said it was not targeting specific manufacturers.
The German government, amid a wider review of its relationship with China, its biggest trading partner, has been wary of specifically targeting Huawei as it seeks legislation that would allow it to fight back against the company.
A Home Office document on the review obtained by Reuters said a particular supplier could be banned from supplying critical components if it is directly or indirectly controlled by another country's government.
"We cannot depend on components from individual suppliers," Finance Minister Christian Lindner told Welt TV.
As a result of the review, Germany could force operators to remove and replace components already integrated into networks, a spokesman for the interior ministry said, adding that current legislation does not provide for any compensation.
"It's a sign that the federal government may finally be taking China-related national security risks seriously," said Noah Barkin, China editor at research firm Rhodium Group.
"But after years of concern, Germany's 5G network is dependent on Chinese suppliers. It will take many years to resolve this."
Critics of Huawei and ZTE say their close ties to Beijing's security services and their integration into future ubiquitous mobile networks could give Chinese spies and even saboteurs access to critical infrastructure.
Huawei, ZTE and the Chinese government deny the claims, saying they are motivated by a protectionist desire to protect non-Chinese rivals.
With German media reporting the possible ban, China's embassy in Germany said in a statement that Beijing would be "very confused and very unhappy" if such a decision were made.
© Thomson Reuters The ZTE sign is seen at the China International Trade Fair for Services (CIFTIS) 2020 in BeijingIn response to a Reuters request for comment, China's foreign ministry said in a statement that Germany "expects Germany to make an independent decision based on its own interests, business models and international norms, free of third-party interference."
Beijing has often stated that the decisions of European countries it considers enemies are the result of pressure from the United States.
A Huawei spokesman said it had no comment on the speculation and said it had a "very good safety record" in its 20 years as a technology supplier to Germany and the rest of the world. A ZTE spokesman said there was no evidence its products were unsafe, but welcomed external verification.
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Asked about the potential ban, two of Germany's main telecoms operators, Deutsche Telekom and Vodafone Germany, said they fully comply with existing regulations, but did not respond to the political speculation.
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While several European countries are still shaping their telecom policy, only the UK and Sweden have banned Huawei and ZTE from supplying critical 5G network equipment.
"The devil is in the details. It would be a big step forward if it included all components of the access network, where Huawei has been widely used by operators in recent years," said China expert and director of Global Public Thorsten Benner. . Berlin Institute of Politics.
Germany passed a cybersecurity law in 2021 that places major barriers on telecoms equipment makers for next-generation networks, but has not banned Huawei and ZTE like others have.
A new report shows that Germany has become even more dependent on Huawei's 5G (Radio Access Network) devices than for its 4G network, even as operators have avoided using the tech firm Huawei for their main networks.
Last month, the federal government was unable to answer a parliamentary question about the number of carriers using Huawei components in 5G networks, brought in response to the report.
"The concern is that the government is only now starting to see if carriers are using Huawei and ZTE components and that information is not real-time," Benner said.
Sweden's telecoms regulator PTS, which banned Chinese companies from deploying 5G in 2020, has given telecom operators participating in 5G auctions until January 1, 2025 to remove Chinese equipment from their core infrastructure and functions.
Meanwhile, the UK wants to phase out Huawei equipment and services in key network functions by 31 December 2023, down from an initial target of 28 January 2023.
The deadline to remove all Huawei devices from UK 5G networks remains unchanged until the end of 2027.
(Reporting by Sarah Marsh, Andreas Rinke, Friederike Heine and Hakan Ersen; Additional reporting by Supantha Mukherjee and Liz Lee; Editing by Alexander Smith and Stephen Coates)