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The Chinese ambassador, Wu Ken, said that China would not “stand idly by” if Germany were to exclude Huawei from the German market
The ongoing trade-war between the US and China – described by some as a new ‘cold war’ – has had far reaching consequences throughout the world, not least in Europe. In Germany, Chancellor Angela Merkel has so far resisted pressures from the US to take a tougher line on Huawei, opting instead for stricter security criteria for all companies involved in the country’s 5G rollout.
However, Merkel now faces action from within her own government, with legislators tabling a bill that would impose a broad ban on ‘untrustworthy’ 5G vendors. While the bill does not directly name Huawei, the implications are clear for the Chinese technology giant.
The Chinese government, which has previously praised Germany for its fair and fact-based approach to dealing with Huawei, has made it clear that an exclusion from the German market would have direct repercussions for their economic relationship.
“If Germany were to take a decision that leads to Huawei’s exclusion from the German market, there will be consequences. The Chinese government will not stand idly by,” said Chinese ambassador Wu Ken.
China is Germany’s biggest trading partner, generating around €200 billion per year in bilateral trade. The automobile industry is particularly lucrative, with German manufactures accounting for a quarter of the 28 million cars sold in China in 2019.
It is, in fact, this economic reliance that lies just beneath the surface of the ongoing Huawei security discussions.
“Could we say one day that these German cars are no longer safe because we’re in a position to manufacture our own cars?” asked ambassador Wu, Speaking at the World Economic Forum 2019. “No. That is pure protectionism.”
The final decision has yet to be reached by the German government, but it is sure to have a profound effect not only on the telecoms industry, but on Germany’s political and economic relationship with China itself.
You can keep up to date with all of the latest developments in the German telecoms sector by attending Connected Germany in 2020.
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