Germany Mulls Banning Chinese Components from 5G N

Germany Mulls Banning Chinese Components from 5G Network

Germany is considering banning Chinese telecommunications companies from accessing its nascent 5G network. A recent statement from the German government revealed that the European economic giant will spend the next few years phasing out the use of parts developed by Chinese telecom companies ZTE and Huawei from its 5G network due to security concerns. This will mark the second time a major Western economy has turned an unfavorable eye toward Huawei after the Trump administration booted it out of the United States.

This time, however, it seems another Chinese telecommunications company will also be caught in the crossfire. The move by Berlin also represents German efforts to reduce the country’s reliance on Chinese companies across various critical industries. With China largely dominating the global electric vehicle supply chain, Germany may be unwilling to let itself become reliant on China in 5G as well. The decision to push Huawei and ZTE out of Germany’s 5G network comes after the European Union warned that the two companies posed a security risk to member nations.

Consequently, Germany’s interior ministry said Germany will phase out the use of components developed by ZTE and Huawei in “core” 5G mobile networks by the end of 2026 and replace their 5G transmission and access infrastructure by the end of 2029. On top of addressing the reported security concerns associated with Huawei and ZTE, booting the two companies from Germany’s fledgling 5G network will help the European nation develop a domestic supply chain outside of China’s influence.

According to Interior Minister Nancy Faeser, the German government is striving to protect the critical infrastructure that makes Germany an exceptional business location while ensuring that civilian, corporate and state communication is protected. Faeser added that Germany had to limit security risks and avoid the development of “one-side dependencies,” which has happened in the past.

The ministry said 5G is part of the critical infrastructure involved in ensuring a multitude of sectors are functioning optimally and noted that local telecommunications companies have to be protected from the “existential threat” of cyber attacks. German 5G operators Telefonica, Vodafone and Deutsche Telekom have already reached out to German officials on the phase-out of Huawei and ZTE components.

Although Faeser did not comment on whether China would retaliate against the move, she said Beijing already knew about the ZTE and Huawei bans. Huawei has argued that there was “no specific evidence” associating its 5G technology with cyber security risks while the Chinese embassy in Berlin said the move was based on “groundless accusations.”

It would be interesting to hear what companies that have interests within the telecommunications industry, such as FingerMotion Inc. (NASDAQ: FNGR), have to say about the suspicion with which telecommunication equipment from Chinese companies is being regarded in different markets.

NOTE TO INVESTORS: The latest news and updates relating to FingerMotion Inc. (NASDAQ: FNGR) are available in the company’s newsroom at https://ibn.fm/FNGR

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