China ‘firmly opposes’ possible German ban of Huawei and ZTE 5G equipment

Chinese embassy says it is ‘puzzled’ following reports that Germany is reviewing telecoms components for national security risks
Berlin confirms it is evaluating security concerns but denies targeting specific manufacturers

Huawei

Kawala Xie

Published: 4:42pm, 8 Mar 2023

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China said it strongly opposed Germany’s interference in Chinese investments after Berlin ordered a review of Huawei Technologies Co and ZTE Corp components in the country’s 5G networks.

The Chinese embassy in Berlin expressed dissatisfaction over reports that Germany might ban Huawei and ZTE from its telecommunications networks because of national security concerns. The embassy said it was “puzzled” and described the German government’s decision as “hasty” and “without factual basis”.

“China firmly opposes Germany’s use of the concept of national security and its abuse of state power to interfere in the market in its cooperation with China,” the embassy said in a statement.

“[We] hope that Germany will create a fair, just, open and non-discriminatory business environment for Chinese companies, and do more to promote mutual benefit instead of the opposite.”

The embassy defended the safety of Huawei’s equipment, which is used in around 60 per cent of Germany’s 5G networks.

Huawei equipment is used in around 60 per cent of Germany’s 5G networks. Photo: AP

The German newspaper Zeit first reported the possible ban on Monday, citing government sources that said the ban could include Huawei and ZTE components that had already been built into the networks.

According to the report, the government has already spent months inspecting 5G network components that could pose a risk to national security.

The German interior ministry confirmed on Tuesday that the review had been carried out, but denied that it targeted any specific manufacturers.

But Reuters reported that Germany could ban “a specific supplier” from providing critical components “if it were deemed to be directly or indirectly controlled by the government of another state”, according to a document it obtained from the interior ministry.

Countries such as those in the Five Eyes intelligence alliance, which consists of the US, Canada, Britain, Australia and New Zealand, have already banned Huawei from their networks because of national security concerns.

Germany backs port bid by China’s Cosco shipping despite security warnings

Calls have also grown in Germany and other EU countries to address broader national security concerns around key infrastructure involving Chinese investment.

Germany was harshly criticised last year for approving the state-owned China Ocean Shipping Company to become a shareholder in a firm that operates terminals at the Hamburg port, one of the busiest ports in Europe.

Amid criticism, German Chancellor Olaf Scholz travelled to Beijing last November, becoming the first Western leader to visit Chinese President Xi Jinping after he secured a third term in office.

During meetings with Xi, Scholz vowed not to decouple from Beijing despite concerns that his country had become economically dependent on China.

While trade remains strong, Germany has been re-evaluating its China ties to fall in line with the EU’s view that Beijing is “a partner for cooperation” but also a “systemic rival”. Berlin is working on its first national security strategy paper and a China strategy to address geopolitical challenges.

US FCC set to ban approvals of new Huawei and ZTE equipment, document shows

EU-China relations have long been clouded by issues such as human rights and Taiwan, and relations have been further strained during the Ukraine crisis because of Beijing’s strong ties with Russia.

However, China has taken tried to thaw ties with the EU. Last month, foreign policy chief Wang Yi visited Italy and France and attended the Munich Security Conference in Germany, where he met leaders including Scholz and French President Emmanuel Macron.

In a press conference on Tuesday, China’s new foreign minister Qin Gang took a conciliatory tone towards Europe, compared with his harsh words aimed at the US, expressing hopes for closer ties free from interference by third parties.