How Germany's Huawei and ZTE Ban Will Impact the 5G Landscape

Germany is set to gradually remove Huawei and ZTE components from its 5G network over the next five years, a decision that could strain its already tense relationship with China. The phase-out will begin with the removal of these components from the core networks of major mobile operators, including Vodafone, Deutsche Telekom, and Telefonica, by the end of 2026. By 2029, the components must also be removed from access and transport networks, which include infrastructure like transmission lines and towers.

German Interior Minister Nancy Faeser emphasized that this move is aimed at protecting Germany’s critical communication infrastructure and reducing security risks. The German government has highlighted the need for a secure and resilient telecommunications infrastructure to guard against sabotage and espionage. They insist that only trustworthy manufacturers should be used.

Huawei has responded, stating that there is no concrete evidence of cybersecurity risks associated with its technology and that it remains committed to cooperating with its partners in Germany. ZTE has not yet commented on the situation.

The Chinese embassy in Germany has criticized the decision, stating that it damages mutual trust and will impact future cooperation between China and Europe. This action follows Germany's recent block on the sale of a Volkswagen subsidiary to a Chinese state-owned company and comes amidst a broader trade dispute with China, which recently saw the European Union raise tariffs on Chinese electric vehicles.

Germany’s decision mirrors similar actions taken by the United States, United Kingdom, Australia, and Japan, which have all imposed restrictions on Huawei over concerns about potential spyware activities. The U.S. also placed Huawei on a trade restriction list in 2019, further tightening those restrictions earlier this year.

Huawei’s annual report shows that Europe, the Middle East, and Africa made up 21% of its revenue last year.