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In the US, Rebuke, Huawei In



BERLIN – The German government tends to let Huawei Technologies Co. participate in the construction of the country's high-speed Internet infrastructure, several German government officials said. The recent sign of ambivalence among US allies over Washington's insistence on outlawing the Chinese tech giant as a national security risk.

Two weeks ago, a small group of ministries reached a preliminary agreement that still requires the official approval of the entire Cabinet and Parliament. This is not expected for several weeks.

The Trump administration has been pressing its allies for months to curtail Huawei's participation in building its next-generation mobile infrastructure, or even pulling its equipment out of existing networks.

But the lack of willingness in these countries to delay the introduction of so-called 5G services, the potential additional cost of selecting new providers, and the lack of evidence that Huawei's equipment can intercept or interfere with communications, have come to an end of the USA.

In the UK, Washington's closest ally in Europe, an ongoing review expects the company's products to continue to be licensed in less vulnerable parts of its network, British officials say.

And throughout Eastern Europe, where the US has traditionally had a strong influence, governments have been reluctant to drastically reduce Huawei's access, which in part could be a source of concern for China, a major investor in the region.

The German government has done so has made changes to the country's telecommunications laws ̵

1; regardless of the concerns of Huawei. While Berlin had first considered making the rules difficult for Huawei to enter into infrastructure contracts, the authorities said that stricter safety requirements for equipment suppliers, including a spy promise, should not be deliberately set as high as to exclude the Chinese company ,

A recent investigation by the German Cyber ​​Security Agency, with support from the US and other allies, has not shown that the Chinese company could use its equipment to siphon data in secret, according to the executive agency and other government officials

An official The Federal Office for Information Security (BSI) and two cybersecurity experts from the Interior and Foreign Ministry said that the investigation in Germany and other allies had found no evidence of wrongdoing by Huawei. [19659004] Germany is lagging behind in the speed of the Internet behind the rest of Europe – and most of Asia. Therefore, a faster 5G rollout is crucial to a range of new services such as aut onomous vehicles and high-resolution video streaming. German industry representatives also favor a rapid rollout, partly out of concern that China might take revenge by cutting German companies off the Chinese market.

"We missed the boat here in Germany in terms of broadband internet. We need a fast internet, we need it fast and we need it cheaply, "said a senior government official.

Huawei is not only the market leader in network infrastructure components needed to build 5G networks Chancellors had lower prices than their competitors – something German officials had said in the government's preliminary decision not to ban them.

Another official said talks with US and UK services, which were believed to have more insight into potential vulnerabilities in Huawei's equipment, were inconclusive.

In the UK, government officials plan to complete a telecom supply chain review by spring. The goal is to determine whether UK telecommunications networks are relying too heavily on Huawei, people familiar with the review said.

The US announced extensive charges in January against Chinese technology company Huawei. Shelby Holliday of WSJ stops the charges.

UK. The officials share US concerns that Huawei may kick its Western rivals out of business and become the only option for telecom equipment in the near future. Unlike their counterparts in the United States, British officials believe they could tolerate some Huawei devices in British networks, people said.

British officials are considering allowing British mobile operators to only use Huawei's cell tower equipment, people said. Such a device, in contrast to "core" network devices that transmit calls and data, poses a minimal risk because a hacker can only access limited data. Representatives of the UK are also considering requesting the use of multiple mobile operators.

Huawei is already working closely with the German government. Last fall, the company opened a security lab near the BSI headquarters in Bonn, where government officials can review the company's products and source code. A Huawei spokesman said the company supported the stricter security rules for telecommunications and signed an agreement without espionage.

This could bring Huawei into conflict with Chinese legislation. A 2017 Chinese law requires all Chinese companies to work with the country's intelligence services upon request. Vice President Mike Pence warned in a speech in Germany last weekend that communications security would be compromised in markets where Huawei has the opportunity. At the same event, Yang Jiechi, a Chinese foreign official, rejected the allegations and said Huawei is working with European companies.

"Chinese law does not require companies to install backdoors … or spy," Jiechi said. [19659004] Berlin's predilection to grant access to Chinese providers has boosted a small group of politicians and officials who believe that the government underestimates security risks due to short-term economic considerations.

The group is also concerned about the opening of another dispute with the Trump administration and adds a list of hotspots ranging from trade to the Iranian nuclear deal to Nord Stream 2, a German-Russian gas pipeline project, The Washington intends to stop.

US. Ambassador to Germany, Richard A. Grenell, said that German policymakers should consider that China collects and exploits unprecedented data.

"They use a range of legal tools and other mechanisms to control and influence companies to work with Chinese intelligence and security services. This is true for both state-owned companies and seemingly private companies, "Grenell said.

Huawei's founder, former Chinese military engineer Ren Zhengfei, told British Broadcasting Corp. on Monday that … The world can not leave us, even as they persuade more countries to temporarily use us, we can always make things a little smaller. "

" When the lights go out in the west, the East will still shine, "he added "And when the north gets dark, there is still the south, America does not represent the world, America only represents part of the world."

Write to Bojan Pancevski at bojan.pancevski@wsj.com and Sara Germano at sara.germano@wsj.com


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