Germany's Interior Minister Stands Firm Over Removal of China's Huawei Equipment From the Country's 5G Network

Germany's Interior Minister, Nancy Faeser, remains resolute in her commitment to remove Chinese components from the country's 5G telecommunications network, prioritizing national security over the associated high costs.

Germany Official Cites Potential Security Risks of Chinese Components in 5G Network

According to SCMP, Faeser told Handelsblatt that the potential security risks posed of incorporating components from Chinese providers Huawei Technologies and ZTE into Germany's network outweigh any financial concerns.

She noted that the argument of expense should not serve as an excuse to avoid replacing these components if they pose significant security threats.

Faeser asserted, "We will prohibit components if they pose a serious security risk. The network operators will have to act and dismantle the components."

Diverging from several European Union nations' approach, Germany initially opted not to outright ban Huawei 5G equipment, despite pressure from the United States to sever ties with Chinese infrastructure suppliers.

Rather than opting for an outright ban, the German government decreed that components categorized as "critical IT infrastructure" should undergo certification by relevant authorities.

The Interior Ministry of Germany is presently engaged in a comprehensive assessment of the nation's 5G mobile network to ascertain the prevalence of Huawei and ZTE components. While the audit is still in progress, Faeser emphasized the long-standing awareness of potential risks tied to Chinese components.

Faeser said their security services have consistently cautioned against overreliance on a single source. Furthermore, she argued that network providers have had ample time to adapt to this scenario.

Huawei's Return to the 5G Industry

Chinese telecommunication firm Huawei Technologies, which faced severe setbacks in its consumer electronics business due to a US ban on equipment sales, is poised to re-enter the 5G smartphone industry by year-end. This comeback signifies a potential revival for the company's consumer electronics sector.

If Huawei successfully re-establishes itself in the 5G phone market, it would mark a substantial achievement for the Chinese company, which struggled for nearly three years, characterizing its situation as "survival." Following its peak consumer business revenue of $67 billion in 2020, the subsequent year witnessed a sharp decline of nearly 50%.

Before the US restrictions in 2019, which curtailed its access to essential chipmaking tools for advanced models, Huawei had rivaled giants like Apple and Samsung, aspiring to secure a significant market share. However, Huawei's global rankings plummeted last year as the company was limited to selling last-generation 4G devices.

The Biden administration took steps in November 2022 to bar the approval of new telecommunications equipment from Huawei Technologies and ZTE due to perceived threats to the national security of the United States.