Earlier, it was reported that the German government intends to eliminate the technology and components of Chinese telecom operators in the country's 5G core network. The latest news shows that Germany has made specific arrangements for this matter, and the technology of companies such as Huawei and ZTE may be eliminated within two years at the earliest.

01  German government and mobile operators have agreed in principle

Reuters quoted people familiar with the matter as saying that the German government and mobile operators have agreed in principle to gradually remove technology and components from Chinese technology company Huawei from the country's 5G wireless network over the next five years.

Earlier, the Süddeutsche Zeitung and broadcasters NDR and WDR jointly reported the news, saying that the agreement gives network operators Deutsche Telekom, Vodafone and Telefonica Germany more time to replace key components.

According to the preliminary agreement, for so-called "security" reasons, in the first phase, operators expect to eliminate technology from companies such as Huawei and ZTE in the 5G data center of the national core network by 2026, the source said.

In the second phase, by 2029, antennas, transmission lines and tower components from Chinese manufacturers should also be completely excluded.

The person added that a final agreement has not yet been signed.

When asked for comment, the German Interior Ministry said that negotiations between the government and mobile operators were ongoing.

A spokesman said: "The government is taking action in accordance with the national security strategy and the China strategy to reduce possible security risks and dependence."

In fact, Germany raised similar concerns last year. Although there is no evidence to prove the existence of these concerns, critics of Huawei and ZTE still say that embedding their equipment components in the ubiquitous mobile networks of the future may pose security risks to a large number of important infrastructure.

Huawei and ZTE have previously denied these claims many times.

Germany is considered a laggard in implementing EU 5G network security measures. The country's telecom operators have previously resisted Berlin's efforts to push for a costly Huawei phase-out, while Huawei has rejected what it calls the "politicization" of the country's network security.

The U.S. communications regulator said in May that nearly 40% of U.S. telecom companies need additional government funds to remove equipment produced by Chinese telecom companies from U.S. wireless networks to address security risks, given the cost of the transition.

02  Response from the Chinese Embassy in Germany

According to the Chinese Embassy in Germany, on July 11, the German Federal Ministry of the Interior announced that it would gradually remove components of Chinese communications companies such as Huawei and ZTE from the 5G network on the grounds of unfounded potential security risks. China expressed strong dissatisfaction and resolute opposition to this, and hereby stated its solemn position as follows:

Huawei, ZTE and other Chinese communications companies have been operating in Germany in accordance with the law and regulations for a long time, and have made positive contributions to Germany's digitalization process. The Huawei and ZTE 5G issues are ultimately the actions of some countries to suppress their competitors without bottom line in order to maintain their own technological hegemony. The so-called network security risks are just an excuse. In fact, no country has so far produced conclusive evidence that Chinese companies' equipment has security risks.

Openness is mutual. China's 5G construction has always been open to European companies such as Nokia and Ericsson, and has never regarded them as security threats. Germany's move is naked political discrimination, which seriously damages mutual trust between the two sides and will also affect future cooperation between China and Europe in related fields. Germany announced the relevant decision on the occasion of the NATO Washington Summit, which made China seriously question the independence of its decision-making.

Germany and the EU cannot demand fair competition on the one hand, and discriminate against foreign companies on the grounds of unfounded potential security risks on the other. Whether relevant issues can be handled fairly and impartially is a touchstone for testing Germany's own business environment. What will be affected is not only the normal economic and trade cooperation between the two countries, but also the confidence of foreign investors in Germany. China will take necessary measures to safeguard the legitimate interests of Chinese companies.

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