For security reasons: Germany may ban China's Huawei 5G

Germany is moving closer to a decision to phase out Chinese components from its national 5G network by 2026, with three of the four relevant ministries supporting the decision, according to sources.

Here's What We Know

The ministries of foreign affairs and economy support the interior ministry's proposal to seize Huawei and ZTE equipment on national security grounds, according to people who requested anonymity because the discussions are not public. The Digital Ministry has not signed it because of industry opposition, they said.

The need for 5G network reform has become more urgent as restrictions and sanctions on Chinese companies have increased. Such steps are supported not only in domestic politics but also in the international arena. For example, the US recently imposed new tariffs and revoked chip sales licences for Huawei as relations with Beijing deteriorate.

A spokesperson for the Ministry of Digital Technology rejected claims that they are blocking decisions "on security issues related to mobile network expansion".

Deutsche Telekom AG, Germany's largest mobile operator, has previously said that a ban on Chinese components by 2026 is unrealistic.

According to representatives, government agencies are working on a two-stage phase-out of Chinese components in the network. The first stage involves the removal of critical components by 2026, and the next stage involves reducing dependence on them by 2029.

Source: Bloomberg