As Europe figures out how to roll out 5G, Germany is the latest country to think about kicking Chinese tech companies Huawei and ZTE off its networks.
A story from Reuters says that Germany’s Interior Ministry wants these companies to stop making important hardware by 2026. The move would be a big change for Germany, which had previously ignored requests from the US to break ties with Huawei.
This move by Germany isn’t just another episode in the ongoing tech cold war between China and the US, it has bigger effects. Germany has the biggest economy in Europe and is also China’s most important trade partner in the EU.
Janka Oertel of the European Council on Foreign Relations says that 65% of Germany’s 5G infrastructure is made with Huawei parts.
Carsten Senz, a Huawei executive in Germany, said in a recent radio talk that Huawei’s technology has been used in Germany for years without any security problems. The company also cautioned that the prohibition would result in increased expenses for both telecom firms and German consumers.
Huawei’s case is based on how it will affect the economy, but the EU has been telling its members to be careful.
In 2020, the EU said that Huawei’s participation in 5G rollouts should be limited or banned. But so far, only a third of EU countries have done the same.
As of 2019, almost 60% of Huawei’s 5G orders around the world were with operators in Europe.
Germany’s decision about 5G could be a big deal for all of Europe. If Germany bans certain companies from its 5G networks, it might influence other European countries to do the same. This could change how telecom companies operate in Europe. So, what Germany decides could impact the whole continent.
The next few months will be very important for the Chinese business. Even though security is still important, economic issues are too big to ignore. The digital future of Europe may depend on what Germany decides in the end.