The turning point of “Huawei”

The administration of US President Donald Trump has had some success in convincing US allies to exclude Huawei from China, Huawei from their 5G networks, but Germany has been the most important success in this regard. It is gratifying that Berlin has decided soon to address the security risks that the Chinese telecom giant poses to German security.German Chancellor Angela Merkel’s cabinet is reportedly preparing legislation that could gradually reduce cooperation with Huawei as the main supplier of 5G networks in Germany. While the bill does not seek to ban the company altogether, it would lead to the Chinese company being cut off from German networks. Some of the details of the law may change, but Washington appears confident of a good outcome. “We see things moving in the right direction in Germany,” Keith Krach, the US Under Secretary of State for Economic Affairs, said last Wednesday. “There is no real future with Huawei.”

In July, the European Commission warned that the continent needed to move away from “relying on high-risk suppliers,” a veiled reference to Huawei.

The United Kingdom announced a ban on dealing with the company in the same month, and France enacted regulations discouraging French telecom companies from using Huawei equipment. A blanket ban on the company’s business from the European Union would be ideal, but other European countries are likely to follow in Germany anyway.

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The US-led campaign is not aimed at promoting US companies, as Sweden’s Ericsson and Finland’s Nokia will be the biggest beneficiaries of Huawei’s exclusion in Europe. But the real goal is to avoid national security risks, as Huawei has long-standing ties with the People’s Liberation Army, and there is no independent Chinese company under the rule of the Communist Party.

Merkel has been slow to make the decision for a long time due to economic concerns. China is Germany’s largest trading partner, and Chinese government subsidies make Huawei equipment significantly cheaper. But Merkel has now finally moved against the company, after facing opposition from across the German political spectrum, including from her own party.

Finally, the Chinese government may retaliate against German companies that do business in China. But this will confirm Berlin’s decision that there is no confidence in Beijing.

“We are seeing things moving in the right direction in Germany, as there is no real future with Huawei.” Keith Crash, Under Secretary of State for Economic Affairs