(Bloomberg) — Germany’s ruling coalition has agreed on a compromise proposal to strip Huawei Technologies Co. components from the nation’s 5G core mobile network by the end of 2026 for national security reasons.
Most Read from Bloomberg
Companies will then have until the end of 2029 to remove parts made by Huawei and its Chinese rival ZTE Corp. from the 5G access and transport network, according to people familiar with the plan, who asked not to be identified discussing confidential information.
The agreement was reached after extending the deadline to implement the first phase by a year, added the people. Bloomberg previously reported the Digital Ministry, which is run by the business-friendly Free Democrats, was against a stricter proposal by the Interior Ministry, which is controlled by Chancellor Olaf Scholz’s Social Democrats.
Interior Ministry spokesman Maximilian Kall said a review of critical components in 5G mobile networks “is continuing and should be completed shortly.”
“A decision has been made on how to proceed,” he added. A spokesman for the Digital Ministry referred a request for comment to the Interior Ministry. A spokesman for Huawei said the company would wait for an official announcement before commenting, while ZTE did not immediately respond to a request for comment.
Germany’s security review of its 5G network has dragged on for more than a year even as the US and European Union are increasingly focused on potential risks posed by Chinese companies.
The US administration recently introduced new tariffs and revoked licenses for selling chips to Huawei as relations with Beijing deteriorate.
Germany’s Sueddeutsche Zeitung newspaper published the details of the deal earlier on Wednesday.
When asked about Germany’s plan at a regular press briefing Thursday in Beijing, Foreign Ministry spokesman Lin Jian said there’s “never been evidence showing Chinese telecom companies harm the national security of European countries.”
“We hope Germany will respect facts, decide on their policies in a rational manner, and make an independent decision that is in line with its interests and international rules,” he added.
Deutsche Telekom AG, Germany’s largest mobile operator, has said that a ban of Chinese components by 2026 is not realistic.
Germany has been more hesitant to implement a ban on Chinese parts than some of its allies. The UK banned Huawei from next-generation 5G wireless networks in 2020 and limited its presence in fixed networks, citing supply-chain concerns after the US imposed sanctions on the company.
Germany opted to allow components from Huawei when companies, including Deutsche Telekom, built 5G networks. However, Berlin has since taken a tougher stance on China and sought to reduce its dependence on individual countries following Russia’s invasion of Ukraine.
–With assistance from Lucille Liu and Philip Glamann.
(Updates with comments from China’s Foreign Ministry.)
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.
This post was originally published on the 3rd party mentioned in the title ofthis site
