Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Merkel's conservatives stop short of Huawei 5G ban in Germany

Stock MarketsFeb 11, 2020 12:45PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: IFA consumer tech fair in Berlin

By Andreas Rinke

BERLIN (Reuters) - Lawmakers from German Chancellor Angela Merkel's ruling conservatives have backed a position paper on 5G mobile networks that recommends tougher rules on foreign vendors while stopping short of banning China's Huawei [HWT.UL], sources said.

The document was drafted by Christian Democrat leaders to address the concerns of party rebels who see Huawei as a threat to national security. It is intended to lay the ground for Merkel's coalition government to adopt a common position on 5G after months of divisive debate.

The move rebuffs U.S. President Donald Trump's calls on Washington's allies to bar the Chinese telecoms giant from next-generation networks after Britain stopped short of an outright ban and the European Union backed a rules-based approach.

Several party sources said on Tuesday that Christian Democrat lawmakers had supported the four-page paper that, instead of imposing any individual bans, sets out the principles of a risk-management approach.

"State actors with sufficient resources can infiltrate the network of any equipment maker," it said. "Even with comprehensive technical checks, security risks cannot be eliminated completely - they can at best be minimised.

"At the same time, we are not defenceless against attempts to eavesdrop on 5G networks. The use of strong cryptography and end-to-end encryption can secure confidentiality in communication and the exchange of data."

Ironing out differences with a bloc of pro-American lawmakers led by Norbert Roettgen, head of parliament's foreign affairs committee, marks an important step towards building a broader consensus in Merkel's ruling alliance with the Social Democrats and across party lines.

It will also be important for Germany to present a coherent position at a security conference in Munich this weekend that will be attended by U.S. Secretary of State Mike Pompeo and Chinese foreign minister Wang Yi.

HUAWEI DEPENDENCY

It would be costly and potentially risky for Germany, Europe's largest economy, to exclude Huawei. Its three network operators are all customers of the Chinese vendor and Berlin is concerned that such a move might provoke trade retaliation by Beijing.

With that in mind, the paper makes a clear distinction between access, transport and core networks that are especially sensitive, thus allowing different handling of Huawei components in the various parts of the 5G network.

The paper suggests using products from several companies to avoid a "monoculture", and calls for the concept of trustworthiness to be anchored in proposed tweaks to Germany's telecoms and IT security laws.

"Equipment makers can only be trusted if they verifiably fulfil a clearly defined security catalogue that rules out any influence from a foreign state on our 5G infrastructure," the document says.

The draft would also give operators until 2025 to swap out equipment from existing 4G networks that was supplied by vendors who fail certification checks, a position that would mitigate the cost to operators of ripping and replacing it.

The position paper also calls for Germany to push for a wider European industrial policy to ensure that its own companies can build all elements of internationally competitive and secure 5G networks.

It pushed back against hostile foreign takeovers, in an apparent reference to U.S. Attorney General William Barr's recent call to invest in Swedish equipment maker Ericsson (ST:ERICb) or Finland's Nokia (HE:NOKIA) to gain a 5G foothold.

Ericsson CEO Borje Ekholm and Nokia's Rajeev Suri are due to meet Merkel on Thursday, according to officials from the German government and the companies.

Merkel's conservatives stop short of Huawei 5G ban in Germany
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
akljsdf askldf
akljsdf askldf Feb 11, 2020 2:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
can't let Huawei in, the backdoor is proven
Ravi Shastri
Ravi Shastri Feb 11, 2020 6:32AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Any operator in a authoritarian complex is beholden to the powers. That is given. No one can dispute that. Even huawei cannot deny that. Given that fact only fear of chinese retaliation will force you to give in. Would you have chinese aid and corona virus? Because no amount of aid will save you! It is the same logic with huawei. If the germans dont get it, they will learn it the hard way. The US should not compromise and let the europeans to their own decices and pull out of NATO. There are no partial solutions in security.
Show previous replies (1)
Jack Zhang
Jack_A Feb 11, 2020 6:32AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
according to the logic, US companies are controlled by government too, what is the difference?
Bill Chan
Bill Chan Feb 11, 2020 6:32AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Why US done bad thing, everybody quiet. Nobody talk about influenza. Die a lot of ppl
Cos Tin
Cos Tin Feb 11, 2020 6:32AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yes, I agree. If the EU doesn't forbid Huawei in their 5G, the US should pull out of NATO. The same with buying Russian gas.
Mart Bab
Rubberduck1973 Feb 11, 2020 6:32AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Cos Tin  Why? As far as I can remember, Russia is an Allie of the US. Trumps friend is Puttin. Why shouldn’t EU buy gas from Trumps personal friend?
Mart Bab
Rubberduck1973 Feb 11, 2020 6:32AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I can tell you why we see all of this rhetoric by the US. Simple. US what’s EU to buy gas and 5g from US. Plain and simple. US wants to be the boss man. Booley everyone into a trade deal. As they have always done.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email