Deutsche Telekom is said to have signed a contract with the Chinese network supplier Huawei in 2019 to circumvent US sanctions, reports the “Handelsblatt”. The group rejects the allegations and is considering legal action.
Deutsche Telekom is said to have signed a secret pact with the Chinese mobile communications group Huawei. The companies signed an agreement in 2019 with which they could have circumvented US sanctions, reports the “Handelsblatt”. The contract states that they want to “prevent a potential supply risk in relation to Huawei products that contain components from the USA,” writes the German newspaper. Important components should therefore be stored and managed in Huawei warehouses in Europe and individual Huawei devices should be delivered to Telekom in advance.
Ex-US President Donald Trump blacklisted the Chinese telecom equipment supplier in 2019 and excluded it from building the 5G network. The German mobile phone provider is therefore likely to have feared a supply bottleneck with components. “The allegation has no factual basis whatsoever,” Deutsche Telekom said in a statement. In 2019, it was decided to remove Chinese manufacturers from the “safety-critical mobile core network” and to examine legal action against the “Handelsblatt”.
German and US politicians are concerned about the connection between Huawei and Telekom
German Interior Minister Nancy Faeser expressed concern about Sino-German ties. “That doesn’t sound good,” said the SPD politician, according to the “Handelsblatt”. Because the revelations come at a critical time for Berlin. The German government is currently examining how many components from Huawei and its national competitor ZTE are installed in the German mobile network. The background is the concern of too great a technological dependence on China. There are also warnings of espionage opportunities through Chinese components, which Huawei rejects.
The “Handelsblatt” reported that the German connections also met with a lack of understanding from US politicians. US Senator Marco Rubio said: “Germany and the companies operating there should work with us and not help an opposing regime to undermine international security.”
Austria is also examining the exclusion of Huawei and ZTE
Austria is also currently examining how to deal with the Chinese network suppliers Huawei and ZTE. The broadcasting regulatory authority RTR has dealt with the cause on the instructions of the Ministry of Finance. An exclusion of the two companies from the 5G network would be associated with high costs in Austria and a setback for digitization.