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Report: US warns Germany against buying 5G network equipment from Huawei


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Fintech Intelligence Newsletter: February 2021


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Report: US warns Germany against buying 5G network equipment from Huawei

The U.S. government is pressuring Germany to bar Huawei Technologies Co. Ltd. from building the country's 5G telecom network infrastructure by warning that using Chinese-made equipment could jeopardize intelligence-sharing between the U.S. and Germany, The Wall Street Journal reported March 11, citing a letter from U.S. Ambassador to Germany Richard Grenell to the German Economics Minister.

The letter also cautioned against using other Chinese equipment vendors for fear of the Chinese government's ability to influence these companies. Instead, Grenell suggested Ericsson, Nokia Corp. or Samsung Electronics Co. Ltd. would be more suitable 5G network partners.

Germany's telecom operator recently updated its security requirements for equipment suppliers, requiring participating companies to sign a no-spying agreement and allow inspection of critical source codes and oversight of key personnel associated with 5G network builds.

Huawei is facing increased scrutiny in several countries due to concerns about the potential for state espionage, which it has repeatedly denied. The company filed a lawsuit against the U.S. government challenging a ban on federal agencies using its equipment.