China Tightens Grip On Huawei's German 5G Deal, 'Consequences' Expected If Still Banned

Chinese tech company Huawei is recently pushing to seal its 5G deal in Germany. As the U.S. government has been successful in dissuading other countries to buy Huawei tech, the company is now taking measures to make it happen and is considering taking action if its German partner backs down.

Chinese ambassador Wu Ken said that Germany would see some “consequences” if it also bans Huawei from its market, Bloomberg reported. “The Chinese Government will not stand idly by,” Ken said.

Huawei is about to face another ban in Germany which is about to be finalized soon. Potentially, the new legislation coming from the German government could ban Huawei for the second time for its technological wares.

The U.S. government has deemed Huawei’s technology to be capable of espionage and has been warning other countries to not trust it.

On the other end, Huawei has repeatedly explained that its technology can’t spy on its users. The Chinese government also insisted that Huawei has no legal obligation to share its data to the government.

For now, Washington, Beijing and Huawei will have to wait on the German government’s decision as to how things will proceed.

Meanwhile, the U.S government has been active in spreading word about Huawei’s technology to countries that want to avail the company’s 5G technology. So far, several countries aiming to make a deal with Huawei have either chosen a different company to work with or are holding their decision in favor of an investigation.

With these proceedings, Huawei is losing ground and revenue with this pressure. Germany is one of the remaining countries still interested in getting 5G technology. The company has yet to successfully close any major 5G technology deals with any country throughout 2019.

Both Huawei and the Chinese government are already making plans on how to fight back against the bans and pressure from the U.S. government. Huawei is planning to file a lawsuit on the Federal Communications Commission on the decision it made which limited the company’s movements in the country. Lastly, the Chinese government is also now putting efforts to prevent another trade ban from happening again.