The uproar among German telecom companies is significant. The Federal Ministry of the Interior is reportedly planning a ban on the use of critical components from Chinese manufacturers Huawei and ZTE in the 5G core network from 2026 on. For the so-called access and transport network, the proposal envisions reducing Huawei and ZTE components to an average of 25%. There is apparently no consensus within the government, and it is unclear whether the proposal is driven by the upcoming elections in Hesse, where Interior Minister Nancy Faeser (SPD) is facing challenges. Nevertheless, this idea aligns with the prevailing logic in Europe, which addresses problems with prohibitions. In Sweden, Chinese components will be excluded from use starting in 2025, and the UK is already closing its doors to Huawei and similar companies at the end of this year.

However, the question of whether these components should be banned or not is not the most constructive one. The analysis has shown that we have developed an evidently high dependence on components from Chinese tech giants in a sector considered absolutely critical in modern society. Therefore, the question should be how to reduce this dependence. It may not be achievable in the short term, but why not learn from the Chinese on how to reduce external dependencies? China has been so successful in recent decades that it has turned dependencies into the opposite.

For example, how about a scenario where critical components must be produced in the EU, and the producer must be a joint venture with a majority stake held by an EU company? Telecom companies would have to form joint ventures with their Chinese partners to continue using their components. This approach could also ensure that high-tech know-how returns to Europe, similar to how China has done reversely with various industries. Is this questionable from a regulatory perspective? After all, the EU didn't hesitate to push US giants like Amazon, Microsoft, and Alphabet into operating servers in Europe. Why should ZTE and Huawei be treated differently? The Chinese couldn't even stigmatise this idea, which ultimately originates from them, as protectionist. It's time to shift away from thinking solely in terms of bans.