Commentary: Germany's push to eliminate Chinese 5G equipment unfair, counterproductive

BEIJING, July 12 (Xinhua) -- The German government's plan to eliminate Chinese telecom equipment from its 5G wireless network over the next two to five years is unwarranted and will certainly impede Germany's digital infrastructure development.

This decision, announced concurrently with the NATO summit, broadens the scope of national security concerns beyond evidence, appearing to be politically motivated.

To date, no country has provided solid proof of security vulnerabilities in equipment manufactured by Chinese companies.

Chinese telecom firms such as Huawei and ZTE, long active in Europe, have significantly enhanced the region's communication infrastructure with their affordable and reliable products. Restricting their market access is likely to cause significant disruption in the local telecom sector.

Interestingly, Germany's national railway operator Deutsche Bahn AG (DB) has opposed the plan. According to German news service Spiegel, DB could face an expenditure of up to 400 million euros (about 435 million U.S. dollars) to undertake the complete replacement of infrastructure components currently supplied by Huawei and may potentially encounter project delays spanning five to six years.

The U.S. efforts over the past few years to exclude Chinese telecommunications equipment do provide a valuable lesson.

According to the U.S. Federal Communications Commission (FCC)'s latest report, nearly three years after the launch of a replacement program, only 12 percent of the local telecom companies have finished the removal of network equipment from Huawei and ZTE. Moreover, some U.S. rural telecom providers are "on the verge of bankruptcy" owing to the replacement drive.

These small carriers are burdened with supply chain disruptions and a shortage of trained engineers for building new networks, previously supported by Chinese suppliers. It's not difficult to imagine a similar scenario unfolding in Germany.

Having operated in Europe for many years, Huawei and other Chinese telecom companies have provided high-quality telecom infrastructure and created significant jobs and tax revenue for Europe. According to a 2020 report from the Oxford Economics institute, Huawei's operations in Europe in 2019 contributed an economic revenue of 16.4 billion euros to the continent, directly or indirectly sustaining 224,300 jobs and generating 6.6 billion euros in tax revenue.

Meanwhile, China maintains an open market for European telecom businesses, ensuring market access without barriers or political bias. Major Chinese telecom operators have included leading European suppliers like Ericsson and Nokia in their 5G equipment procurement bidding lists.

Collaboration in next-generation telecom technologies promises a win-win outcome for both China and Germany. Actions disrupting normal technological and economic exchanges do not align with Germany's actual needs for 5G advancement and contradict the country's consistent advocacy for fair competition.

Just as the German proverb cautions against "sawing off the branch one is sitting on," it would be wiser for Germany to adopt a more confident stance that benefits itself without hindering others.