Berlin, Brussels This Tuesday, the restriction of Chinese technology in the German mobile network is one step closer: The telecommunications providers Deutsche Telekom, Vodafone and Telefónica are requested to report all critical components made in China that are installed in their networks to the Federal Ministry of the Interior by April 4th.
After the dramatic experience of the Ukraine war and the momentous decision to place German gas storage facilities in the hands of the Russian energy company Gazprom, the interior ministry of SPD politician Nancy Faeser attaches the utmost importance to the protection of critical infrastructure.
But not all ministries involved in the internal government vote share this line. In particular, Volker Wissing’s (FDP) Ministry of Transport is opposed to crackdown on Chinese tech suppliers Huawei and ZTE, as the Handelsblatt learned from several high-ranking government sources. The reason is concern about missing the expansion targets for the super-fast 5G network. The Huawei dispute is thus entering a new round, although it is now embedded in an orderly bureaucratic process.
Based on the components reported by the network operators, the Ministry of the Interior will probably decide by the summer which components need to be replaced. Deutsche Telekom, Vodafone and Telefónica have close ties to China, especially Huawei. According to industry estimates, Telekom built 65 percent of its antenna network with technology from the Chinese company, while Vodafone and Telefónica use around 50 percent.
There is no clear schedule because the law does not provide for any deadlines: the test of the reported components should be completed by the beginning of July, the federal government lets know in response to a small request from the Union faction, which is available to the Handelsblatt. A spokeswoman for the Ministry of the Interior said on request that the federal government would then make a decision.
Federal Ministry of the Interior warns of strong dependency
Internally, however, the Ministry of the Interior has already made a decision internally, according to Handelsblatt information: the heavy dependence of German network operators on Chinese technology could endanger public safety in the Federal Republic. Therefore, the procedure will “be critical”, it was said recently. A central criterion is the question of the “probable impairment of public order or security”.
The Interior Minister sees the use of Huawei technology in German telecommunications as dangerous.
(Photo: dpa)
The German law theoretically also offers the possibility of banning the installation of critical components from certain manufacturers in advance, i.e. ex ante. However, this option is considered to be too easily attacked from a legal point of view. The information provided by the manufacturers should now enable the federal government to get an overall view in order to decide on this basis which components are critical and which are not. Internally, there is talk of an “ex-post” procedure.
The federal government emphasizes that according to the current legal situation, there is no provision for a blanket exclusion of individual products or manufacturers from 5G networks, with the exception of serious cases of abuse. Therefore, the use of each component is checked on a case-by-case basis by the Federal Ministry of the Interior.
Theoretically, there are two options: In the event of an acute danger, the federal government could order the immediate replacement of critical components. Or they could agree on a gradual expansion with the network operators. Only option two is considered realistic in Berlin.
>> Read here: Germany’s top cyber security authority uses Huawei technology
However, the Federal Ministry of the Interior must make the decision “in agreement” with the other departments involved. These include the Foreign Office and the Ministry of Transport. So Wissing has a de facto right of veto.
That is why arguments are now being exchanged in the government that are already known from the Huawei debate at the time of the grand coalition. Even then, it was said that restricting Chinese tech providers such as Huawei would jeopardize network expansion in Germany.
Parts of the green-led Ministry of Economic Affairs are also critical of restrictions on Huawei or ZTE products and fear high costs and delays in network expansion. A confidential paper from Vice-Chancellor Robert Habeck to the Bundestag states: “If extensive conversions become necessary due to bans or orders that have been made, it can be assumed that there will be a significant impact on the operation of the mobile phone networks and the fulfillment of coverage requirements.”
How much Chinese technology is in the German mobile network: The network operators have to provide information about this this week.
(Photo: dpa)
The administration around Habeck, which stands for a stronger demarcation from China, expressly does not share this view – the anger at the advance of the officials is correspondingly great.
The Federal Foreign Office is also critical of cooperation with Chinese providers. “We know that certain companies, including ZTE and Huawei, are subject to legal obligations in China that oblige them to cooperate with Chinese security authorities and in particular to share data,” a senior diplomat said.
Chinese government has ties to Huawei
In the Foreign Office you can see a new situation. It has been observed that “a whole range of our most important partners have changed their view of the security of the 5G networks and have issued tougher regulations”. In addition, the overall cyber security situation has “deteriorated significantly”, which also has to do with China’s changed behavior.
Both ZTE and Huawei are under the control of the Chinese Communist Party (CCP) at various levels, according to the government’s response to the Union faction’s small inquiry. The government cites so-called party cells, i.e. organizational units of the CCP within companies, as one of these opportunities to exert influence.
China’s Company Law Law entitles the Party to set up such cells to carry out Party activities in companies. In fact, Chinese law requires Party cells for all companies in the People’s Republic that employ three or more Party members. “This gives the CCP a legal and factual opportunity to effectively ensure the attainment of political objectives by influencing management and corporate policy,” the government’s response reads. The Handelsblatt recently showed that the cells can influence business decisions using the example of a German company.
>> Read here: The Loss of Control: How the Communist Party is expanding its influence in German corporations.
To the knowledge of the federal government, Huawei and ZTE also maintain such a CCP party arm. Both Huawei founder Ren Zhengfei and chairman of the board Liang Hua are also members of the party.
In the end, the decision on how much Chinese technology is still safe in the German network will depend on Chancellor Olaf Scholz (SPD). So far, he has mainly tried to keep the discussion away from himself. “The question of how to ensure that our infrastructures are protected from misuse, that we are not dependent, is part of state action mechanisms that are already regulated by law at the authority level,” said Scholz recently in Brussels.
One thing is very clear: the decision to withdraw trust from China’s tech champion Huawei is not an administrative matter, it is highly political – and will have consequences for German-Chinese relations.
More: German companies are investing more than ever in China – where the greatest dependencies exist