Germany is reportedly on the verge of deciding to remove Chinese technology from its 5G core network by 2026, with three out of four relevant ministries backing the measure due to national security concerns.

The foreign and economy ministries support the interior ministry’s proposal to eliminate Huawei Technologies Co. and ZTE Corp. components. The digital ministry, however, has not yet approved the measure, citing opposition from the industry, reported Bloomberg.

Germany’s review of its 5G network components has been ongoing for over a year. The U.S. and European Union have heightened scrutiny over security threats from Chinese firms, with the U.S. recently imposing tariffs and revoking chip sale licenses to Huawei amid deteriorating relations with Beijing.

The proposed plan involves a two-step removal process. By January 1, 2026, German telecom providers would need to eliminate all critical Huawei and ZTE components from their core networks. 

By 2029, these providers must also reduce their dependency on Chinese components in their access and transport networks.

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Delays in reaching an agreement highlight friction within Germany’s ruling coalition, which also contends with issues like next year’s federal budget.

Chancellor Olaf Scholz’s Social Democratic Party (SPD) oversees the interior ministry, the Greens control the foreign and economy ministries, while the Free Democratic Party (FDP) manages the digital ministry.

Deutsche Telekom AG (OTC:DTEGY) (OTC:DTEGF), Germany’s leading mobile operator, previously stated that banning Chinese components by 2026 is impractical. 

SPD foreign affairs spokesman Nils Schmid emphasized the party’s firm stance against Chinese components in critical infrastructure and criticized the digital ministry for hindering progress despite support from other FDP members.

Germany has been slower than some allies in banning Chinese technology. The U.K. banned Huawei from 5G networks in 2020, citing supply chain security concerns following U.S. sanctions on the company. 

Germany initially allowed Huawei components in its 5G build-out but has adopted a stricter approach following Russia’s invasion of Ukraine, seeking to minimize dependence on any single country.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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