Huawei faces minimal prospects in securing the 5G contract
Germany's 5G Network: Huawei Faces Challenges Amidst Political and Security Concerns
Berlin - Huawei's prospects of participating in Germany's 5G network are increasingly uncertain, as the federal government is reportedly finalizing a draft of the new IT Security Act. This legislation is expected to implement expanded trust assessments of competitors, moving beyond purely technical aspects to scrutinize whether a company is structurally linked to a suspect political system.
According to reports, the approach would mirror the rules outlined in the Foreign Trade and Payments Act. German intelligence services and federal ministries would also influence the decision-making process, making a Chinese provider like Huawei an unlikely candidate. Germany, unlike the United States, would not exclude Huawei from the outset but would instead evaluate the company based on the expanded trust assessments.
The Federal Foreign Office is reportedly advocating for an even stricter approach, incorporating both technical and political trust assessments of providers. In this context, the rapporteur for IT and cybersecurity in the Bundestag's Interior Committee, Christoph Bernstiel (CDU), stated that it is crucial to seek the Federal Office for the Protection of the Constitution and the Federal Intelligence Service's input regarding potential providers' security credentials.
Metin Hakverdi, China rapporteur of the SPD parliamentary group, also supports political approval, stating that as long as the Communist Party in China continues to arbitrarily disregard principles of the rule of law and market economy, Huawei should be excluded. Michael Brand (CDU), human rights spokesman of the Union parliamentary group, emphasized the need to prevent the impression that China is exerting pressure on Germany and hindering the EU from becoming independent in key technologies.
In the EU, Huawei and ZTE are recognized as higher-risk suppliers for 5G networks, and some Member States have excluded them based on cybersecurity concerns. This stance reflects a broader political and security assessment within the EU, with Huawei facing increased scrutiny due to concerns over its perceived ties to the Chinese government and the potential risks associated with its equipment.
Recent developments include Huawei's curtailed lobbying efforts in the EU and ongoing legal challenges related to patent disputes and regulatory compliance, which can impact its ability to operate freely in European markets. Despite these obstacles, Huawei remains a significant player in the global telecommunications sector. However, given the current political climate and security concerns, it is likely that Huawei will face significant hurdles in participating in Germany's 5G infrastructure.
Other technology providers may find opportunities amidst the challenges Huawei faces in Germany's 5G network, given the expanded trust assessments that scrutinize not only technology aspects but also political links.
The new IT Security Act, with its political approval and evaluation of providers' security credentials, potentially opens the door for other technology companies to compete in Germany's 5G infrastructure.
